A total of 36 stocks from the Nifty Smallcap 500 index gained between 5-9%, another 38 stocks rose 4% each, 35 added 3% each and 38 stocks were up 2 per cent each in Monday's intra-day trade.
For FII flows to accelerate - lower crude oil prices, rupee stability and two consecutive quarters of earnings delivery without downgrades seem must, says Jignesh Desai of Centrum Broking.
The optimism around Q1 earnings is shifting from large caps to midcaps. Following a five-week breather near the all-time high, the Midcap Index regained momentum, said ICICI Securities.
The Nifty Midcap 50 and Smallcap 50 have gained 21 per cent and 29 per cent thus far in FY27 led by strong gains in BHEL, Laurus Labs, Prestige Estates, Aegis Logistics and Welspun Corp.
Among sectors, the Nifty IT index, the worst performer among sectoral indices, tanked 27.8 per cent in H1CY26 as rising concerns around artificial intelligence (AI)-led disruption spooked investors.
Pabitro Mukherjee of Bajaj Broking believes the technical setup is favourable for up to 15% upside in smallcaps Allied Blenders and Distillers, NBCC (India) and Sagility.
Mid-, small-cap stock ideas: Rohan Shah, technical analyst at Asit C. Mehta Investment Interrmediates sees up to 23% upside potential in NCC, Zydus Wellness, Aarti Industries, VTL and Redington.
While it is well known that investing early in a small company that goes on to become large offers the potential for multibagger returns, it comes with a distinct set of risks
Looking ahead, the outlook for SMIDs for the remainder of CY26 remains constructive, though returns are likely to become more differentiated compared to the broad-based rally seen earlier
While the small- & mid-cap rally may not sustain the extraordinary pace witnessed in recent months, a sharp reversal also appears unlikely amid strong domestic liquidity, writes Srimal of Axis Direct
