Midcap index hits all-time high, smallcap index at fresh 52-week high in early trade
BSE Midcap index hits fresh all-time high and BSE Smallcap index hits its fresh 52-week high, boosted by strong macroeconomic numbers and positive global cues. The benchmark index BSE Sensex also witnessed gains, rising nearly 300 points in early trade.
PremiumOn expected lines, the domestic market appears to have got a boost from the latest strong macroeconomic numbers and positive global cues as the BSE Midcap index hit a fresh all-time high of 27,293.43 while the BSE Smallcap index hit its fresh 52-week high of 30,969.95 in the morning trade on Friday (June 2).
The midcap index opened slightly higher at 27,211.56 against the previous close of 27,130.43 and rose over half a per cent to hit a fresh high. On the other hand, the smallcap index also opened higher at 30,806.42 against the previous close of 30,711.67 and rose about a per cent to hit its one-year peak. The all-time high of the smallcap index is 31,304.44 which it hit on January 18, 2022.
Shares of Nuvoco Vistas Corporation, SJVN, Power Finance Corporation, Godrej Properties and Indian Overseas Bank were among the top gainers in the BSE Midcap index, rising between 2-6 per cent.
In the BSE Smallcap index, shares of Ddev Plastiks Industries, Nureca, KDDL and Paras Defence and Space Technologies rose up to 15 per cent.
The benchmark index BSE Sensex also witnessed smart gains, rising nearly 300 points in early trade. Sensex is now just over a per cent away from its all-time high of 63,583.07 that it hit on December 1, 2022.
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Analysts believe it is just a matter of time before they hit the highs. Market sentiment is bullish due to strong foreign fund flows, impressive quarterly results by India Inc., strong macroeconomic numbers and market-friendly economic policies.
Read more: Stock market likely to get a macro boost; which sectors should you bet on?
"A dominant economic trend which has implications for investment in India’s improving economic fundamentals in a challenging global environment. Apart from the better-than-expected FY23 GDP growth rate, high-frequency indicators like GST collections, manufacturing PMI, auto sales in May and impressive credit growth indicate a robust and steadily improving economy," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"FY24 GDP growth is likely to be revised up to around 6.5 per cent and consequently corporate earnings for FY24 also will be revised up. This scenario, in the context of inflation (4.7 per cent in April) coming within RBI’s tolerance limit and peaking of interest rates, augurs well for equity markets in the second half of 2023. An important trend in the market is the outperformance of the broader market. Expect lots of stock-specific action even within the range-bound movement of the Nifty," said Vijayakumar.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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