The broader market indices bucked the trend on May 13, holding firm on a day when benchmark indices were under selling pressure, as investors scouted for value amid small and midcap names after a solid surge a day ago tracking the truce on India’s western border and the tariff progress between US and China.
Several small and midcap companies nudged higher on May 13, pushing the broader market indices higher into the green, even as benchmark indices Sensex and Nifty took a pause a day after record gains. Experts have said that the leading indices may consolidate for the near term after a stupendous rally on Monday, searching for fresh cues to extend the gains beyond the next few sessions.
The Nifty Smallcap index was up 0.8 percent and the Nifty Midcap index was higher by nearly 0.19 percent on May 13, extending gains for a second session. Meanwhile, Sensex tanked 1,282 points to settle at 81,148.22, while the Nifty 50 dropped 1.39 percent to 24,578.
The Nifty Smallcap index has now already surged over five percent this week, while the Nifty Midcap index gained over four percent, cheering the easing geopolitical tensions between India and Pakistan, and cooling off of the trade war between US and China.
"Ceasefire between India Pakistan over the weekend lifted sentiment onshore. Besides a major geopolitical uncertainty getting out of the way, other underlying positive developments which had got clouded due to India-Pak tensions such as India and UK signing a Free Trade Agreement and likelihood of India-US trade deal also shined through," said India Forex And Asset Management (IFA Global) in its latest note.
Devarsh Vakil, Head of Prime Research at HDFC Securities said, "Following yesterday's stupendous rise, Indian benchmark indices will likely consolidate recent gains, while we anticipate continued buyer interest in mid-cap and small-cap stocks at lower levels."
Top Gainers on Nifty Midcap Index
Bharat Dynamics (BDL) shares were the top gainer on the Nifty Midcap index, jumping 11 percent to trade at Rs 1,750 apiece. This comes amid a rally in defence stocks, after Prime Minister Narendra Modi called for more self-reliance in military needs through the usage of 'Made in India' equipment. BDL, which is a private sector entity which received the order to manufacture the key Akash missile system, was strongly benefitted from the comments.
The shares of Bombay Stock Exchange (BSE) followed, rising over 5 percent to trade at Rs 7,308 apiece. Capital market stocks have been in focus recently, as easing geopolitical tensions boosted investor sentiment.
Other notable midcap stocks which recorded strong gains include BHEL, Cochin Shipyard, Mazagon Dock Shipbuilders, Bank of India, Yes Bank, Lupin, Glenmark Pharma, Premier Energies, Union Bank, Federal Bank, Bharat Forge, Kalyan Jewellers, Policybazar, Mankind Pharma, Alkem Pharma, Ola Electric and more.
Top Gainers on Nifty Smallcap Index
IKS shares were the top gainer on the index, rising over 6.4 percent to close at Rs 1,662 apiece. Afocns and Sagility shares followed, rising over 5 percent each. Other notable smallcap stocks which recorded strong gains include Kaynes Tech, Zen Technologies, BEML, IIFL Finance, Nuvama, Anant Raj, GRSE, CDSL, Radico Khaitan, Delhivery, ITI, PNB Housing Finance, Brigade Enterprises, Titagarh Rail Systems and RailTel Corporation, among others.
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.
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