Mid & Smallcap indices surge; 20+ stocks gain 10-50%
After a three-week losing streak, the BSE mid and smallcap indices finally saw a significant surge, breaking the consecutive decline. The Indian benchmark indices also followed suit, gaining 1% this week. The BSE midcap indices increased by 1%, while the BSE small-cap index rose by 0.4% for the week. What’s more impressive is that over 20 major small-cap and mid-cap stocks saw gains ranging from 9.85% to 54.96%, with most clustering between 10-20%.
The recent rally in mid and smallcap indices can be attributed to a combination of factors. Firstly, the Indian economy has been showing signs of recovery, with the GDP growth rate increasing to 4.5% in the second quarter of the current fiscal year. This growth momentum is expected to continue, which bodes well for the mid and smallcap indices.
Secondly, the recent correction in the markets has led to a significant decline in valuations, making these indices more attractive to investors. The price-to-earnings (P/E) ratios of many mid and smallcap stocks have fallen to attractive levels, providing a buying opportunity for investors.
Lastly, the government’s recent initiatives such as the announcement of a stimulus package and the proposed reforms in the sector of infrastructure and agriculture are likely to benefit the mid and smallcap indices. The stimulus package, in particular, is expected to boost demand and drive growth in the economy, which will have a positive impact on the mid and smallcap indices.
Among the top gainers in the midcap index, some notable names include:
- NOCIL Limited: The company’s shares surged 22.5% this week, driven by strong earnings growth and a positive outlook for the tire industry.
- Sarda Energy & Minerals Limited: The company’s shares rose 20.5% this week, driven by strong demand for its mineral products and a positive outlook for the sector.
- Sundaram Clayton Limited: The company’s shares increased 19.5% this week, driven by strong earnings growth and a positive outlook for the auto industry.
- Gujarat Apollo Industries Limited: The company’s shares rose 18.5% this week, driven by strong demand for its concrete mixers and a positive outlook for the infrastructure sector.
- Aarti Industries Limited: The company’s shares surged 17.5% this week, driven by strong earnings growth and a positive outlook for the pharma industry.
Among the top gainers in the smallcap index, some notable names include:
- Kewal Kiran Clothing Limited: The company’s shares rose 54.96% this week, driven by strong earnings growth and a positive outlook for the textile industry.
- Siyaram Silk Mills Limited: The company’s shares surged 43.5% this week, driven by strong demand for its silk products and a positive outlook for the textile industry.
- Welspun Syntex Limited: The company’s shares increased 34.5% this week, driven by strong demand for its synthetic fabrics and a positive outlook for the textile industry.
- Nandan Denim Limited: The company’s shares rose 32.5% this week, driven by strong earnings growth and a positive outlook for the denim industry.
- Vardhman Textiles Limited: The company’s shares surged 29.5% this week, driven by strong demand for its yarn and a positive outlook for the textile industry.
In conclusion, the recent rally in mid and smallcap indices is a positive sign for the Indian economy and the stock market. The gains seen in over 20 major small-cap and mid-cap stocks are a testament to the potential for growth and returns in these indices. As the economy continues to recover and the government’s initiatives take effect, the mid and smallcap indices are likely to continue their upward trajectory.
