Mid, smallcap indices extend rally for 5th day, outperform benchmarks; Cochin Shipyard, Titagarh rise up to 15%

mid- and small-cap stocks continued their strong upward momentum for the fifth straight session on Friday.

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26 Aug, 2025 12:21

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The mid- and small-cap indices continued their strong upward momentum for the fifth straight session on Friday, thus defying the broader weakness in benchmark indices.

While the frontline indices came under pressure after a sharp rally in the previous session, the broader markets held firm.

The Nifty Smallcap100 rose up to 9 percent over the five-session period till May 16, and the Nifty Midcap100 gained nearly 7 percent in the same period.

Shares of Cochin Shipyard jumped 13.54 percent intraday to hit a high of Rs 2,057.50 on the NSE. It settled at Rs 2,047, up 12.96 percent.

RVNL and Mazagon Dock Shipbuilders added up to 10 percent in intraday deals in the mid-cap space.

Titagarh surged 14.14 percent to an intraday high of Rs 923.45 and has now gained 33 percent in the last five sessions. GRSE and RITES also registered strong gains, rising up to 12 percent in the small-cap segment.

"There's a lot of buying interest in broader markets. Midcaps have been showing clear outperformance, supported by strong market breadth in recent days," said Ruchit Jain, Vice President at Motilal Oswal Financial Services.

Bloomberg pointed out that midcaps are steadily closing the gap with large-cap peers and are now on track to wipe out their year-to-date losses. The Nifty Midcap100 index outperformed the Nifty 50 this week by the widest margin since late March.

Brokerage Elara Capital highlighted the strong earnings performance of midcap companies, noting a 20 percent profit growth as compared to a modest 4 percent rise among Nifty 50 constituents. The midcap IT pack stood out, clocking a 47 percent jump in profits versus just 1 percent for large-cap tech peers.

However, some brokerages cautioned on valuations, particularly in names like Cochin Shipyard. Analysts at Kotak Institutional Equities flagged potential downside risks, estimating that the stock may correct up to 60 percent from current levels due to stretched valuations.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.