Small, midcaps outshine Nifty, Sensex in lackluster session; IREDA, NTPC Green, JBM Auto jump 9%

The midcap index has jumped 8.5 percent over the past one month.

As the frontline indices oscillated between the green and red in a choppy session on April 16, the broader markets outperformed as investors went bargain hunting.

At 1 pm, the Nifty Midcap 100 index was trading half a percent higher, while the Nifty Smallcap 100 jumped around one percent. In contrast, the Nifty 50 index was flat, quoting 23,350 in a muted session.

While a cautious sentiment took over the benchmarks, JBM Auto, NBCC, Swan Energy, and Aegis Logistics rose between five and nine percent on the smallcap index. NTPC Green Energy, IREDA and Indian Bank were among the top gainers on the midcap gauge, jumping up to eight percent.

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Over the past one month, the midcap index has jumped 8.5 percent, while the smallcap index has soared nearly 10 percent. During the same time period, the headline index Nifty 50 has risen around 4.2 percent.

In a recent note, international brokerage Morgan Stanley noted that it was turning 'capitalization agnostic', given that it is now a stock picker's market. The brokerage decided to cut back its preference for small- and mid-caps over large-caps.

Given the ongoing tariff turmoil impacting the globe, experts across the board have been suggesting that investors rush to the safety of large-caps.

"There is no room for a sustained rally in the market in the present uncertain context. But investors can take relief from the fact that Indian macros are good and we are one of the least impacted countries in this trade war. Investors have to be cautious and should prioritise safety over returns. Safety now is in fairly valued large-caps," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

In a strategy note, domestic broking house Motilal Oswal shared that it was overweight on large-caps and quality midcaps across sectors that benefit from capex, credit growth, and consumption revival.

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