Broader market indices managed to stay firm despite benchmark Nifty and Sensex succumbing to selling pressure towards the latter half of the trading session on May 19, with the Nifty Smallcap 100 index extending gains for a sixth consecutive session to end at a four-month high. The market capitalization of the smallcap index gauge has risen by Rs 1.9 lakh crore during the past six sessions.
Finally, the Nifty Smallcap index ended higher by around 0.7 percent on May 19 to its highest level in nearly four months.
"While the headline indices showed signs of mild pressure, the broader markets outperformed significantly. The BSE Midcap index gained 0.8%, and the Smallcap index added 1%, indicating continued buying interest beyond the large-cap space. This suggests that investors are becoming more confident in the market's breadth, often a bullish sign for the overall trend," said Choice Broking in its weekly outlook.
Delhivery shares were the top gainer on the smallcap index, soaring nearly 10 percent after stellar Q4 results. The company reported a net profit of Rs 73 crore for Q4 FY25, as against the net loss of Rs 68.5 crore in Q4 FY24. Its revenue from operations meanwhile gained nearly 6 percent on-year to Rs 2,192 crore during the quarter under review.
Zen Technologies shares jumped 5 percent to hit the upper circuit after the drone-maker reported a whopping 189 percent on-year surge in net profit to Rs 101 crore for Q4 FY25.
Titagarh Rail Systems, IRCON and CESC shares followed, rising over 4 percent each. IDBI Bank and NBCC shares meanwhile rose over 3.9 percent each.
Other notable smallcap stocks which recorded strong gains include Inox Wind, RITES, Natco Pharma, RailTel Corporation of India, Nuvama, GRSE, BEML, Aditya Birla Real Estate, Laurus Labs and others.
Also read: Our LIVE blog on Q4 results
"The Nifty registered a rally of more than 4% last week, backed by strong broader markets. The Nifty Midcap 100, Smallcap 100, and Microcap 250 indices outperformed the Nifty by soaring 7.21%, 9.17%, and 9.99%, respectively…," noted Devarsh Vakil, Head of Prime Research at HDFC Securities.
The smallcap indices managed to hold on to gains despite sobering global cues, as US market futures have been under pressure after the Moody's sovereign ratings downgrade.
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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