The shares of several smallcap and midcap companies strongly surged on May 26, pushing the broader market indices into the green for the second consecutive session. The positive uptrend among the midcap pack was more pronounced, with Nifty Midcap 100 index outperforming benchmark indices Sensex and Nifty.
The Nifty Midcap 100 index rose 0.67 percent to close at 57,067, while the Nifty Smallcap 100 index rose 0.37 percent to end the session at 17,708. Benchmarks Sensex and Nifty meanwhile rose around 0.56 and 0.60 percent to close at 82,176 and 25,001 respectively.
The positive uptrend in the overall market was driven by a number of factors.
US President Trump on May 25 announced that he has postponed the imposition of 50 percent tariffs on European Union imports until July 9, after a phone call with European Commission President Ursula von der Leyen.
The early onset of monsoon, which has hit multiple parts of South India has also added to the sentiment. The Centre expects above normal monsoon conditions to provide a significant boost to consumption and productivity in the upcoming financial year, reinforcing confidence in India’s growth momentum, senior government sources told Moneycontrol.
Nifty Midcap index:
HUDCO and Suzlon Energy shares were the top gainer on the midcap index, jumping over 4 percent each. The sharp rise in Suzlon's share price comes amid anticipation of strong March earnings to be announced on May 29.
Solar Industries, Rail Vikas Nigam Limited (RVNL) and Paytm shares meanwhile gained over 3 percent each. Notably, the rise in Paytm's share price comes after Supreme Court stayed a GST show cause notice worth Rs 5,712 crore against its private subsidiary First Games Technology.
Other notable midcap stocks which recorded strong gains include Concor, Gordrej Properties, BHEL, Vodafone Idea, Kalyan Jewellers, MRF, Mazagon Dock Shipbuilders, Coforge, Marico, IRCTC, Colgate Palmolive and more.
Nifty Smallcap index:
BEML shares were the top gainer on the smallcap index, rallying over 15 percent to close at Rs 4,294.60 apiece. This comes after the company reported strong March quarter results, and said that it expects its orderbook to hit Rs 22,000 crore by FY26-end against Rs 14,000 crore at present.
KEC International shares followed, rising over 6 percent at close. Other notable smallcap stocks which recorded significant gains include Data Patters, Inox Wind, Trident, CAMS, RailTel Corporation of India, Hindustan Copper, Delhivery, IRCON, Welspun Corp, Anant Raj, PVR Inox and more.
"The markets started the week on a positive note, gaining over half a percent amid volatility, continuing Friday's rebound… The broader indices—midcaps and smallcaps—also edged higher, posting gains in the range of 0.4% to 0.6%. The move reaffirms our positive outlook on the markets; however, caution persists due to mixed global cues, which continue to limit the pace of the rally… Traders are advised to remain stock-specific and use any intermediate dips or pauses as opportunities to accumulate quality names across sectors," said Ajit Mishra – SVP, Research, Religare Broking.
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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