Broader markets: Analysts noted that the earlier drop in the stock prices were driven by profit booking following a record run.
Strong investor interest has meant the midcap index has outperformed the benchmark Nifty 50 index, which is up nearly 4 percent for the week at above 23,300.
The shares of small cap stocks also saw significant rise on March 19, with the Nifty Smallcap index jumping over 2 percent to to close at around 15,748.
Nifty 50 settled in the green during the month of March for the past seven of the past ten years, noted JM Financial.
The Nifty Smallcap index has dropped over 20% from its December 2024 peak, while the Nifty Midcap index is down 18% from its September high.
There are indications that a cartel of traders collaborated to temporarily manipulate the market in their favour, profiting by reversing their trades afterwards
The Nifty Midcap Select index aims to track the performance of a portfolio of 25 liquid midcap stocks.
At 12:52 am, the Nifty Midcap 100 was trading at Rs 39,198.95, falling around 600 basis points.
Rally in midcaps has left the Street divided. One faction sees a “mad dash” happening in midcaps while the other believes the rally is far from over and the valuations are still catching up. No matter who is right, the fact is most stocks are getting re-rated on a daily basis, i.e., they are seeing their price multiples rising. This means stocks are delivering excess returns disproportionate to their earnings growth, leading to what some term as “froth”. Below are some names that have delivered maximum excess returns in the Nifty Midcap 100 index.
Stocks such as Union Bank of India, Indian Bank, REC, all of them PSUs, have delivered more than 100 percent returns in one-year period but there are some that have left investors poorer
The Nifty midcap 100 index was up for 13 straight sessions and gained 5.56 percent during this period.
Top gainers from the midcap space, included ICICI Securities, which spiked 12 percent, followed by RBL Bank, PAGE Industries, Sun TV Network, TVS Motor Company, Havells India and M&M Financial Services.
Nifty Midcap is trading at a 10 percent discount to the Nifty so far this year compared with the 2019 daily average of 6.8 percent