The shares of several smallcap and midcap indices recorded strong gains on June 9, pushing the broader market indices significantly into the green. The smallcap and midcap indices are currently outperforming benchmark indices Sensex and Nifty, which were up over 0.4 percent each.
The Nifty Smallcap 100 index gained 1.36 percent to stand at 18,835.45, extending gains for the sixth consecutive session. The Nifty Midcap 100 index meanwhile was up nearly 1 percent to hover around 59,589, extending gains for the fourth straight session.
Bandhan Bank shares were the top gainer on the midcap index, jumping nearly 7 percent to trade at Rs 185 apiece. Notably, bank stocks are currently rallying after RBI Governor Sanjay Malhotra on June 6 announced MPC's decision to cut the central bank's policy repo rate by 50 basis points to 5.5 percent and reduce Cash Reserve Ration (CRR) by 100 bps to give a boost to liquidity in the banking system.
IREDA shares followed, jumping nearly 5 percent to trade at Rs 183 apiece. Hindustan Zinc, Bank of India and Bharat Forge shares followed, gaining over 4 percent each. Muthoot Finance, Bank of Maharashtra and NTPC Green shares rose over 3 percent each.
Other notable midcap stocks which recorded strong gains include Nykaa, M&M Finance, AU Small Finance Bank, Motilal Oswal Financial Services, Mphasis, Indus Towers, Solar Industries, Oil India, Vodafone Idea and more.
On the smallcap index, Five-Star Business Finance was the top gainer after jumping over 9 percent. IIFL Finance and MCX followed, gaining 7 percent and 6 percent respectively. MGL, Nuvama and ABREL shares meanwhile gained over 4 percent each.
IEX, Laurus Labs, Titagarh Rail Systems, Poonawalla Fincorp, PNB Housing Finance, Reliance Power, RailTel Corporation of India, Ramco Cements, Sagility India and NCC were some of the notable names among the other top gainers.
"Small and midcaps continue to outperform, buoyed by robust domestic flows and sentiment. But with valuations now running ahead of fundamentals in many pockets, investors should temper expectations and stay selective—focusing on quality names with sustainable earnings and reasonable pricing," said Ajit Mishra – SVP, Research, Religare Broking.
Ajit Banerjee, President and Chief Investment Officer at Shriram Life Insurance Company Limited, meanwhile said, "While the tailwinds like macro conditions and monetary conditions remain conducive to the market, the consumption levels need to pick up to meaningful levels along with a receding geopolitical uncertainty, which is restraining investors, producers, and consumers to operate with a margin of safety, and hence, play safe."
"In view of the above, the rate-sensitive sectors are likely to perform better and the domestic market facing sectors will be less vulnerable to the external risks. So, overall, the investors should continue to have moderate expectations from the market in FY26," Banerjee added.
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