Small, midcap stocks rally up to 9%, broader markets extend gains for 2nd day; check top gainers

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The shares of smallcap and midcap stocks recorded strong gains on August 19, pushing the broader market indices into the green for the second consecutive session. This comes amid overall optimism in the stock markets, buoyed by multiples factors.

Nifty Midcap 100 index jumped nearly 1 percent to close at 57,665, while Nifty Smallcap 100 index rose nearly 0.7 percent to stand at 17,914.

Ola Electric Mobility shares surged more than 9 percent to trade at Rs 44.96 apiece. During an interview with Moneycontrol, the company’s founder Bhavish Aggarwal said India’s electric vehicle market is in the "middle of the S-curve” of adoption, with a period of consolidation likely before the next phase of rapid growth.

Paytm, Exide Industries, Bandhan Bank and Astral shares followed, jumping more than 4 percent each. Nykaa, Tube Investments of India and CONCOR shares jumped more than 3 percent each, while L&T Finance, Premier Energies and Policybazaar (PB Fintech) shares gained over 2.5 percent each.

Suzlon Energy, UPL, Motilal Oswal Financial Services, Supreme Industries, SJVN, Voltas, Page Industries, NTPC Green, Colgate Palmolive and Sona Comstar shares rose over 2 percent each, while Federal Bank, IDFC First Bank, Waaree Energies, Vodafone Idea, NMDC, Oil India, Tata Tech and HUDCO were up over 1.5 percent each.

On the smallcap index, Devyani International was the top gainer. The shares of the KFC and Pizza Hut-operator jumped over 7 percent to trade at Rs 167 apiece. IIFL Finance and Reliance Power shares gained 5 percent each, while Welspun Living, PNB Housing and PVR Inox shares were up over 4 percent each. IRCON, Inox Wind, RITES, Chambal Fertilisers, Natco Pharma and Laurus Labs shares rose over 2 percent each.

While delivering his Independence Day speech, Prime Minister Narendra Modi hinted at the next generation of Goods and Services Tax (GST) reforms to be announced as a Diwali gift for consumers. The Centre has proposed to move towards "simple tax" with 2 slabs—"standard and merit", with special rates applicable for only for select few items. According to reports, this will significantly reduce tax burden on consumers aiming to buy several items. This significantly boosted optimism in the stock markets, pushing the benchmark index Sensex up 1,000 points, and Nifty over 25,000-mark.

International credit ratings agency S&P Global on August 14 upgraded India's long-term sovereign credit ratings to 'BBB' from 'BBB-'. Economists have positively reacted to the upgrade, stating that it reflects on India’s prudent fiscal policy. A day later, S&P Global upgraded ratings of top 10 financial institutions, saying that India's financial institutions will continue to ride the country's good economic growth momentum. The positive commentary from the international ratings agency boosted market sentiment further, which spilled over to the broader markets.

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.