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Business News/ Markets / Stock Markets/  Nifty Midcap and Smallcap indices hit fresh record highs, up over 7% in CY24 so far
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Nifty Midcap and Smallcap indices hit fresh record highs, up over 7% in CY24 so far

Mid-and small-cap stocks continue to reach unprecedented levels, with the Nifty Midcap 100 index and Nifty Small Cap 100 both hitting all-time highs. The strength in mid- and small-cap stocks is attributed to increased potential benefits from India's rising capital expenditure.

Nifty Midcap 100 index hits a record high of 49,349 points, while Nifty Small Cap 100 reaches a historic peak of 16,569 points. (Bloomberg)Premium
Nifty Midcap 100 index hits a record high of 49,349 points, while Nifty Small Cap 100 reaches a historic peak of 16,569 points. (Bloomberg)

The persistent upward trajectory of mid-and small-cap stocks continues to capture investors' attention, even as these stocks achieve unprecedented levels. Building upon their robust performance in CY23, where they significantly outperformed large-cap stocks, mid-and small-cap stocks are maintaining their momentum into CY24.

In today's trading session, the Nifty Midcap 100 index reached a new all-time high of 49,359 points, while the Nifty Small Cap 100 also marked a historic peak of 16,653 points. In the current year so far, the Midcap index has gained nearly 7%, while the small cap index has surged nearly 10%. 

The observed strength in mid-and small-cap stocks is attributed to their increased potential benefits from India's rising capital expenditure. Following a substantial tripling of the capital expenditure outlay over the past four years, the outlay for the upcoming year has been raised by 11.1% to 11,11,111 crore, constituting 3.4% of the GDP. 

Also Read: Nykaa share price jumps nearly 6% after Q3 results; Should you buy the stock?

The government has set a fiscal deficit target of 5.8% for FY24 and 5.1% for FY25, signalling a commitment to fiscal prudence. A noteworthy positive development is the gross borrowing, amounting to 14.13 lakh crore. This move has led to a decline in 10-year Indian government bond yields, proving advantageous for PSU banks, which have a higher proportion of government bonds compared to private sector banks.

In the interim budget for 2024–2025, the government has outlined an ambitious goal, aiming to construct 20 million new houses over the next five years under the PM Awas Yojana. Additionally, the budget proposes substantial support for the installation of rooftop solar systems for 1 crore houses under the “Pradhanmantri Suryodaya Yojana," aligning with the government's focus on sustainable and inclusive growth.

Also Read: Nifty 50 may hit 23,400 in the pre-election rally; expect PSU banks, IT, power stocks to lead gains, says ICICI Securities

For the defence sector, the outlay has surged to an all-time high of 6.2 lakh crore in the interim budget, surpassing the 5.94 lakh crore allocated in FY24. Simultaneously, the railways sector has been allocated a total of 2.55 lakh crore as capital expenditure for FY25, demonstrating a commitment to infrastructure development and modernization within the Indian Railways.

Top gainers

In the mid-cap segment, a total of 13 stocks, comprising YES Bank, LIC Housing Finance, SAIL, Torrent Power, Gland Pharma, Max Healthcare Institute, Ipca Laboratories, Lupin, HDFC Asset Management, Cummins India, Apollo Tyres, Gujarat Gas, and KPIT Technologies, have achieved new 52-week highs in today's trade.

Among the top gainers, FSN E-Commerce Ventures (Nykaa) surged nearly 6%, buoyed by robust Q3 FY24 earnings. In the PSU segment, Bank of India, Union Bank of India, NHPC, IRFC, and Bharat Dynamics recorded gains ranging between 1.5% and 3.8%.

Also Read: Suzlon Energy stock price crosses 50 mark for the first time since Aug 2011

In the Nifty small-cap space, J B Chemicals & Pharmaceuticals stood out with a 10% surge following the release of its December quarter performance. Other noteworthy gainers in this category include Indian Overseas Bank, SJVN, Finolex Cables, Angel One, UCO Bank, Graphite India, Suzlon Energy, Chambal Fertilisers & Chemicals, and Elgi Equipments, currently trading with increases in the range of 2.5% to 7%. 11 stocks from the index achieved new one-year highs.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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Published: 07 Feb 2024, 10:08 AM IST
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