Mid-cap index touches record high; Small-cap index hits fresh 7-year high

Over the past ten trading sessions, the S&P BSE Small-cap index has surged 12% and S&P BSE Mid-cap index by 8% compared to 5.5% rise in the S&P BSE Sensex

Shares of mid-and-small-sized companies are trading higher for the 10th straight trading session. At 1207 hours, the S&P BSE Mid-cap index gained 37 points at 11,165, while, the S&P Small-cap index up 64 points at 12,006. In comparison, the S&P BSE Sensex was trading down 0.28% or 82 points at 28,962.

The S&P BSE mid-cap index hit a record high of 11,194 and S&P BSE Small-cap index touched a high of 12,027, its highest closing level since January 2008.

Over the past ten trading sessions, the S&P BSE Small-cap index has surged 12% and S&P BSE Mid-cap index by 8% compared to 5.5% rise in the S&P BSE Sensex.

Bayer CropScience, Cera Sanitaryware, Ingersoll-Rand (India), ISGEC Heavy Engineering, Relaxo Footwear, Suven Life Sciences, Symphony and Thomas Cook (India) from mid-cap and Force Motors, Granules India, La Opala RG, Navin Fluorine International and Igarashi Motors India from small-cap were trading at lifetime highs on the BSE.

According to rating agency CRISIL, analysis of rating actions during the second half of the just-concluded fiscal shows a significant improvement in the credit quality of mid-sized firms.

"Mid-sized firms look better placed – many of them have improved business profiles and maintained profitability. They managed working capital better than smaller firms because of greater bargaining power. Also, they had healthier leverage compared with large-sized firms that witnessed rating actions. We expect this trend to continue in the near term," CRISIL said in a recent report.

Meanwhile, among individual stocks, Gujarat Gas Company surged 14% to Rs 758 on the BSE after the company said it has received approval to commence operations in Thane and Dadra & Nagar Haveli.

GSPC Gas Company and Gujarat Gas Company (GGCL) received authorisation from the market regulator, Petroleum and Natural Gas Regulatory Board (PNGRB) to set up the gas network in Union Territory (UT) Dadra and Nagar Haveli and Thane in Maharashtra.

DCB Bank gained 7% to Rs 123 after the private sector lender posted a 61% year-on-year (y-o-y) rise in net profit at Rs 63 crore for the fourth quarter (Q4) ended March 31, on the back of higher net interest income.