Home >Markets >Stock Markets >BSE Mid, Smallcap scale record highs

MUMBAI : The BSE Midcap and BSE Smallcap indices scaled record highs on Tuesday with both gaining more than 1% as markets continued to gain for the second straight day.

The BSE Midcap index hit a lifetime high at 20,628.20 while BSE Smallcap index made a new high at 20,828.13 during the day.

“Strong buying was seen in Midcap and Smallcap packs and outperformed broader indices as visible earnings recovery is attracting investors in this space," said Binod Modi, head-strategy, Reliance Securities.

Investors have been rushing to buy mid and smallcap stocks after the crash in markets in March 2020. This year so far, the BSE Mid and Smallcap indices have outperformed the broader index, gaining 15% each against a 5.3% rise in the Sensex.

In February, the BSE Midcap gained 10.49%, BSE Smallcap index surged 12% while the Sensex was up 6%. From the March 2020 lows, the Sensex has surged 88.56% while the Midcap and Smallcap indices soared 109% and 134% respectively.

Modi said concerns pertaining to rising bond yields appear to have softened a bit after central bankers globally began to push back against higher rates.

“This should offer some comfort to Indian equities and the rupee as rising bond yields in the US and declining spread between US Treasury yields and India’s Gsec yields had started putting pressure on the rupee. Further, given continued rebound in high frequency key economic indicators in February, we believe underlying strength of domestic equities remains intact," Modi added.

Overall, the Sensex gained 447.05 points or 0.90% to end at 50,296.89 on Tuesday. The 50-share index Nifty jumped 157.55 points or 1.07% before closing at 14,919.10.

Vinod Nair, Head of Research, Geojit Financial Services said, “An improved outlook post-February auto sales numbers resulted in continued buying in auto stocks with IT sector also being a major contributor in the rally".

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Edit Profile
My ReadsRedeem a Gift CardLogout