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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.

SI Reporter  |  Mumbai 

Mid, Smallcap index hit 12-week highs

The S&P and the S&P 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 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 (down 26%) and S&P (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 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

First Published: Thu, December 20 2018. 13:32 IST
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