Nifty Midcap 100 index notched a fresh record high on November 17 by rising 0.7% to hit 61,156 with IRB Infra, Hero MotoCorp leading the gains.
Motilal Oswal Financial Services (MOFS) said Indian midcap companies saw their third straight quarterly rally on robust Q2 earnings.
"The quarterly earnings season has concluded on a healthy note, with mid-caps outperforming large-caps and small-caps," said analysts at Motilal Oswal Financial Services on November 17.
"For the second half of fiscal year 2026, we expect overall earnings to improve further, helped by a cavalry of measures by the government to boost consumption and reset the trajectory of earnings." the Motilal Oswal analysts added.
97 out to the 100 companies on the index extend their three quarter streak of upbeat quarterly results and deliver strong earnings growth of 34% YoY, said MOFS.
Multiple mid-cap sectors clocked impressive growth as 16 of 22 sectors deliver a double-digit PAT growth, added MOFS.
Oil and Gas, metals, NBFC lending, PSU banks, and real estate contributed 70% of incremental YoY accretion to earnings, as per MOFS.
India's mid-caps equity-oriented mutual fund schemes had net assets under management of Rs 4.55 lakh crorr in October, surpassing large-cap, multi-cap, and small-cap funds, reflecting investors' strong preference for mid-caps, AMFI data showed.
So far in 2025, the midcap index rose 7%, slower than benchmark Nifty 50's 9.7% rise.
"Mid-caps (97 companies) have extended their streak of the past three quarters and yet again delivered a strong earnings growth of 34% YoY (versus our estimate of 23%). In contrast, small-caps (142 companies) continued to experience weakness and a broadbased miss. The small-cap earnings dipped 5% YoY (versus our estimate of 3% growth)," said MOFS.
Among individual stocks, on November 17, IRB Infra rose 5% as its unit won a contract worth Rs 9,270 crore.
IRB Infrastructure Trust won project from the National Highways Authority of India to operate and maintain parts of highways in Uttar Pradesh.
CLSA said the company's tolling business witnessed good growth in the second quarter and sustained in October as well.
Meanwhile, Hero MotoCorp rose 4% as Q2 margin expansion impressed brokerages.
Motilal Oswal said it expects company to deliver a volume CAGR of 6% over FY26-28, driven by new launches and a ramp-up in exports
Nirmal Bang said Hero MotoCorp outperformed industry during the festive season, gaining 40 bps market share.
Sustained volume growth, rising premium mix and expanding EV portfolio will strengthen the company's leadership in two-wheelers, it added.
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