Small & Midcap Indices Extend Gains for Sixth Session: Market Rally Continues on Strong Buying Interest
Midcap Indices Extend Gains : On March 24, 2025, the Indian stock market witnessed a significant upswing as small and midcap indices extended their gains for the sixth consecutive session, driven by sustained investor interest and robust buying activity. This rally underscores the growing confidence in India’s economic prospects and the attractiveness of these segments to both domestic and foreign investors.
Midcap Index Performance
The Nifty Midcap 100 index surged over 1.4%, surpassing the 52,000-mark for the first time in over a month. This milestone reflects renewed investor optimism and a shift towards midcap stocks, which are often seen as a barometer for economic resilience and growth potential.
Smallcap Index Performance
Similarly, the Nifty Smallcap 100 index climbed nearly 1.3%, reaching approximately 16,390, marking a one-month high. This rise indicates a broader market rally, with investors seeking opportunities beyond large-cap stocks, focusing on companies with high growth potential.
Top Performers in the Midcap Segment
Several midcap stocks stood out during this rally:
- Indian Renewable Energy Development Agency (IREDA): Shares of IREDA surged over 7%, rebounding from a previous decline of over 55% since July. The company’s recent decision to increase its borrowing limit by ₹5,000 crore for the ongoing fiscal year and the launch of its first-ever perpetual bond to raise ₹1,247 crore have bolstered investor confidence.
- Bharat Dynamics Limited (BDL): The defense sector saw a boost, with BDL shares jumping over 5%. This uptick contributed to the Nifty India Defence index’s rise of nearly 3.3% during the trading session.
- PB Fintech (Policybazaar): The parent company of Policybazaar experienced a nearly 5% increase in its stock price, reflecting positive investor sentiment towards fintech companies.
- Kalyan Jewellers: Shares of Kalyan Jewellers rose by nearly 5%, indicating strong performance in the retail jewelry sector.
- Cummins India: The engineering major saw its shares climb over 4%, showcasing strength in the industrial sector.
- Mazagon Dock Shipbuilders: This defense public sector undertaking’s shares increased by nearly 4%, aligning with the overall positive trend in defense stocks.
- Poonawalla Fincorp: The financial services company’s shares rose over 3%, reflecting investor confidence in its growth trajectory.
- Federal Bank: The private sector lender’s shares were up over 3%, indicating strength in the banking sector.
- Rail Vikas Nigam Limited (RVNL): Shares of RVNL increased by over 3%, highlighting positive sentiment in infrastructure development.
- Indraprastha Gas Limited (IGL): The utility company’s shares climbed over 3%, reflecting optimism in the energy sector.
Top Performers in the Smallcap Segment
The smallcap index also featured notable gainers:
- RailTel Corporation of India: Emerging as the top gainer, RailTel’s shares rose over 5%, following a sharp 10% jump in early trade. The surge came after the company secured a ₹25.15 crore order from Hindustan Petroleum Corporation, boosting investor confidence.
- 360 One WAM: The asset management company’s shares jumped over 4%, reflecting positive market sentiment.
- Brigade Enterprises: The real estate firm’s shares increased by over 4%, indicating strength in the real estate sector.
- Kaynes Technology: Shares of Kaynes Tech rose over 4%, showcasing investor interest in technology firms.
Expert Insights
Market analysts provided valuable perspectives on the ongoing rally:
- Ajit Mishra, Religare Broking: Mishra advises a ‘buy on dips’ strategy, emphasizing sectors demonstrating consistent strength. He highlights banking, financials, metals, and energy stocks as preferred picks, with selective opportunities in PSU and auto stocks. He cautions against aggressive positioning in midcap and smallcap stocks despite their sharp rebound, suggesting investors closely monitor key technical levels and global cues for further direction.
- Devarsh Vakil, HDFC Securities: Vakil notes the impressive weekly performance across major indices. The Nifty surged 953.20 points (4.26%), and the Sensex climbed 3,076.60 points (4.17%). The Midcap 100 index rose by 7.74%, marking its strongest weekly performance since April 2020, while the Smallcap 100 index soared 8.64%, its most substantial weekly gain since June 2020.
Financial Ratios of Key Companies
Understanding the financial health of these companies is crucial for investors. Below are key financial ratios for select companies:
| Company | Basic EPS (₹) | Diluted EPS (₹) | Cash EPS (₹) | Book Value/Share (₹) | Dividend/Share (₹) |
|---|---|---|---|---|---|
| Kalyan Jewellers India | 5.38 | 5.38 | 7.38 | 40.45 | 1.20 |
| Poonawalla Fincorp Limited | N/A | N/A | N/A | N/A | N/A |
| Bharat Dynamics Limited (BDL) | N/A | N/A | N/A | N/A | N/A |
| Mazagon Dock Shipbuilders | N/A | N/A | N/A | N/A | N/A |
| RailTel Corporation of India | N/A | N/A | N/A | N/A | N/A |
Note: Data for companies marked as N/A were not available at the time of writing.
Q&A Section
Q: What factors contributed to the recent surge in small and midcap indices?
A: The sustained rally in small and midcap indices is attributed to continued investor buying, positive market sentiment, and robust performance across various sectors, including defense, financial services, and energy.
*Q: Which
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like MoneyControl, ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.