Mid, Smallcap indices hit 12-week high, gain up to 8%
Midcap and Smallcap indices were trading higher for the eight straight days, gaining 8% and 7%, respectively, during the period.
 "Mid, Smallcap indices hit 12-week high, gain up to 8%")
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The S&P BSE Midcap and the S&P BSE Smallcap indices hit their respective 12-week high after a recovery in rate sensitive and consumer discretionary sector stocks.
These indices were trading at their respective highest levels since September 28, 2018.
On Thursday, both these indices gained for the eighth straight day, rising 8% and 7%, respectively, after the appointment of Shaktikanta Das as the 25th governor of the Reserve Bank of India (RBI). Strong mutual fund buying coupled with short covering drove the indices higher, market analysts say. In comparison, the S&P BSE Sensex was up 4% during the same period.
Since December 11, domestic institutional investors led by mutual funds made a net inflow of Rs 22.82 billion in equities till Wednesday, according to provisional stock exchange data. Foreign portfolio investors, on the other hand, were net sellers amounting of Rs 8.9 billion during the same period, data shows.
The S&P BSE Smallcap (down 26%) and S&P BSE Midcap (down 15%) were still down more than 10% from their respective 52-week high levels touched in January this year.
Dhiraj Relli, MD & CEO, HDFC Securities says the Nifty has the potential to touch a new high during the calendar year 2019 (CY2019). This, he says, is based on expectations of a pick-up in earnings among Indian corporates post Q4FY19 and resumption of FII flows into India around and post general elections. Mutual fund inflows in India are on a structural up move driven by greater financialisation of savings, he says.
"Softening stance (including a probable rate cut) by the RBI in early 2019 could help valuations. Participation among large-caps may be more widespread than seen in 2018. Continuation of trade tiffs, resumption of bullishness in crude oil prices, continuation in the rate hike by the US Fed and unstable outcome from general elections remain key risks to achieving the above," he said in a recent report.
STRONG OUTPERFORMANCE
Out of 960 stocks from the mid and smallcap index, 420 stocks outperformed the market by gaining more than 8% in the past eight trading days. Of these 150 stocks gained over 15% during the period.
Aditya Birla Money, Nitco, Indo Rama Synthetics, SORIL Infra Resources, Indiabulls Integrated, IL&FS Engineering and Construction Company, EIH Associated Hotels, Indiabulls Real Estate, Tata Steel BSL and PC Jeweller are among those stocks which have rallied between 30% and 50%.
These indices were trading at their respective highest levels since September 28, 2018.
On Thursday, both these indices gained for the eighth straight day, rising 8% and 7%, respectively, after the appointment of Shaktikanta Das as the 25th governor of the Reserve Bank of India (RBI). Strong mutual fund buying coupled with short covering drove the indices higher, market analysts say. In comparison, the S&P BSE Sensex was up 4% during the same period.
Since December 11, domestic institutional investors led by mutual funds made a net inflow of Rs 22.82 billion in equities till Wednesday, according to provisional stock exchange data. Foreign portfolio investors, on the other hand, were net sellers amounting of Rs 8.9 billion during the same period, data shows.
The S&P BSE Smallcap (down 26%) and S&P BSE Midcap (down 15%) were still down more than 10% from their respective 52-week high levels touched in January this year.
Dhiraj Relli, MD & CEO, HDFC Securities says the Nifty has the potential to touch a new high during the calendar year 2019 (CY2019). This, he says, is based on expectations of a pick-up in earnings among Indian corporates post Q4FY19 and resumption of FII flows into India around and post general elections. Mutual fund inflows in India are on a structural up move driven by greater financialisation of savings, he says.
"Softening stance (including a probable rate cut) by the RBI in early 2019 could help valuations. Participation among large-caps may be more widespread than seen in 2018. Continuation of trade tiffs, resumption of bullishness in crude oil prices, continuation in the rate hike by the US Fed and unstable outcome from general elections remain key risks to achieving the above," he said in a recent report.
STRONG OUTPERFORMANCE
Out of 960 stocks from the mid and smallcap index, 420 stocks outperformed the market by gaining more than 8% in the past eight trading days. Of these 150 stocks gained over 15% during the period.
Aditya Birla Money, Nitco, Indo Rama Synthetics, SORIL Infra Resources, Indiabulls Integrated, IL&FS Engineering and Construction Company, EIH Associated Hotels, Indiabulls Real Estate, Tata Steel BSL and PC Jeweller are among those stocks which have rallied between 30% and 50%.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| OM METALS INFRAP | 41.00 | 34.70 | 18.16 |
| SATIN CREDITCARE | 262.90 | 227.80 | 15.41 |
| ARVIND SMARTSP. | 139.35 | 123.80 | 12.56 |
| KESORAM INDS. | 91.90 | 82.75 | 11.06 |
| IL&FS INV.MANAG. | 8.49 | 7.72 | 9.97 |
| GANESH HOUSING | 72.95 | 66.70 | 9.37 |
| FIBERWEB (INDIA) | 47.90 | 43.90 | 9.11 |
| NELCAST | 80.20 | 73.75 | 8.75 |
| KIRL. BROTHERS | 159.40 | 146.60 | 8.73 |
| TATA TELE. MAH. | 4.49 | 4.14 | 8.45 |
| BHARAT SEATS | 110.00 | 101.45 | 8.43 |
| NAVKAR CORPORAT. | 55.00 | 50.80 | 8.27 |
| JAIN IRRIGAT-DVR | 48.90 | 45.20 | 8.19 |
| BEML LTD | 912.90 | 848.15 | 7.63 |
| ALEMBIC | 48.65 | 45.35 | 7.28 |
| STEEL EXCHANGE | 16.60 | 15.50 | 7.10 |
| UJJIVAN FIN.SER. | 272.75 | 254.70 | 7.09 |
| TAKE SOLUTIONS | 146.90 | 137.90 | 6.53 |
| JK TYRE & INDUST | 109.40 | 102.95 | 6.27 |
| MIRC ELECTRONICS | 29.20 | 27.50 | 6.18 |
| COSMO FILMS | 229.95 | 217.40 | 5.77 |
| R C F | 66.75 | 63.35 | 5.37 |
| JAMNA AUTO INDS. | 66.25 | 62.95 | 5.24 |
| DREDGING CORPN. | 371.35 | 353.00 | 5.20 |
| ALLCARGO LOGIST. | 113.70 | 108.10 | 5.18 |
| NACL INDUSTRIES | 28.85 | 27.45 | 5.10 |
| INDIABULLS INTEG | 376.10 | 358.20 | 5.00 |
| CENTRAL BANK | 34.80 | 33.10 | 5.14 |
| DEWAN HSG. FIN. | 238.25 | 227.10 | 4.91 |
| GRUH FINANCE | 315.40 | 301.50 | 4.61 |
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