Midcap index scales all-time high despite flat close for benchmarks

Strong domestic participation and improving global risk sentiment lifted midcap stocks to record highs, even as benchmark indices closed largely unchanged

The Nifty Midcap 100 on Thursday rose 1.1 per cent to hit an all-time high of 62,003, even as benchmark indices Sensex and Nifty ended the session flat. The Nifty Midcap 100 has been rising continuously for the last four sessions.

 

The Sensex ended the session at 77,845, down 114 points, or 0.2 per cent. The Nifty, meanwhile, ended at 24,327, down 4 points, or 0.02 per cent.

 

In the ongoing financial year 2026-27 (FY27), the Nifty Midcap 100 has gained 17.8 per cent after rising a mere 1.89 per cent in FY26. Though the midcap index hit an all-time high, the Nifty Smallcap 100 remains 4.9 per cent away from its record high, while the Nifty is 7.6 per cent below its all-time high.

 

“Midcap and smallcap stocks have rallied because valuations had turned attractive after a prolonged correction since September 2024, with many counters falling 40-50 per cent from their September peaks. The ceasefire holding between the US and Iran has improved risk sentiment, while strong participation from retail investors and domestic institutions continues to provide liquidity support to the broader market,” said Chokkalingam G, founder of Equinomics.

 

Chokkalingam added that retail investors are increasingly gravitating towards midcaps because they offer unique thematic growth opportunities, unlike the moderate growth prospects in sectors such as IT and FMCG in the largecap space.

 

“While benchmark indices and largecaps may remain subdued due to muted foreign investor inflows and concerns over rupee depreciation, midcaps and smallcaps could continue to outperform on strong domestic participation, though investors should remain cautious as signs of froth are beginning to emerge,” Chokkalingam said.

 

The overall market breadth remained strong, with 2,704 stocks advancing and 1,572 declining. The Nifty Smallcap 100 rose 0.87 per cent. INDIA VIX, a gauge of market volatility, declined 0.34 per cent to 16.62.

 

Foreign portfolio investors (FPIs) were net sellers worth ₹341 crore, while domestic institutions were net buyers worth ₹441 crore. Hindustan Unilever, which declined 1.95 per cent, was the biggest drag on the Sensex among its constituents.