Latest news with #NiftyMidcap
Hans India
2 days ago
- Automotive
- Hans India
Trade Setup June 20: Nifty stays flat, but sharp midcap sell-off raises market alarm
The Nifty50 index ended marginally lower for the third straight session on June 19, closing at 24,793 with a 19-point dip. Despite the index remaining rangebound—moving within a narrow 130-point band—concerns escalated over a steep sell-off in the broader market, particularly among midcaps. Nearly 90% of the 100 midcap stocks saw declines, pushing the Nifty Midcap index down by 2%, even as frontline benchmarks remained largely flat to negative. This stark divergence signals brewing caution among investors. Among sectoral indices, only auto managed to close in the green. Eicher Motors and M&M emerged as standout gainers, providing some relief to an otherwise weak session. On the Nifty, top performers included Tata Consumer, Eicher Motors, and M&M. In contrast, Adani Ports, Bajaj Finance, and Shriram Finance weighed down the index with notable losses. In the IT space, Tech Mahindra slipped 2% after Morgan Stanley downgraded the stock to "Underweight." Meanwhile, Wipro rose 2% as the brokerage upgraded it to "Equal-weight." Swiggy shares gained 2% following IIFL Capital's optimistic coverage. The brokerage initiated a "Buy" call on the stock with a price target of ₹535, estimating a potential upside of 46%. Markets remain cautious amid global geopolitical tensions, with participants eyeing signals for a broader trend reversal or continued consolidation.
India Today
2 days ago
- Business
- India Today
Sensex ends 83 points lower, Nifty below 24,800; Adani Ports down 3%
Benchmark stock market indices closed lower on Thursday in a highly volatile session that swung between gains and losses, reacting to global uncertainty due to rising tension in the Middle S&P BSE Sensex was down by 82.79 points to end at 81,361.87, while the NSE Nifty50 lost 18.80 points to close at 24, Nair, Head of Research, Geojit Investments Limited, said that the Indian equity index experienced rangebound movement with a negative bias as cautious sentiment spread across the globe, driven by concerns over potential U.S. involvement in the Middle East conflict."Investor mood was further affected by the Fed's decision to keep interest rates unchanged while signalling persistent inflation and slower economic growth, which weighed on software export stocks," he & Mahindra topped the gainers with a strong 1.69% rise, followed by Titan gaining 0.74%, Larsen & Toubro up 0.57%, Bharti Airtel adding 0.56%, and Maruti Suzuki climbing 0.45%. Adani Ports crashed 2.50% to lead the decliners, followed by Bajaj Finance falling 2.08%, Tech Mahindra down 1.95%, IndusInd Bank declining 1.54%, and Nestle India slipping 1.28%."Broader market performance lagged the benchmark index, influenced by selling in mid- & small-caps, while better stability was noticed in large-cap growth stocks, keeping a close watch on crude oil prices and global developments,: said Nair. The broader market indices ended in the red with Nifty Midcap falling 1.63%, Nifty Smallcap down 1.99%, while India VIX declined 0.14%. Only two sectors managed to close in positive territory - Nifty Auto gained 0.52% and Nifty Pharma rose 0.68%.advertisementMost other sectors ended with Smallcap led the decline with a 1.99% fall, followed by Nifty Media down 1.91%, Nifty Realty falling 1.60%, Nifty Metal declining 1.29%, Nifty IT dropping 0.94%, Nifty Consumer Durables slipping 0.91%, Nifty Financial Services down 0.68%, Nifty Healthcare falling 0.65%, Nifty Oil & Gas declining 0.64%, Nifty FMCG down 0.31%, Nifty Private Bank slipping 0.30%, and Nifty PSU Bank losing 2.04%.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)Must Watch
Hans India
3 days ago
- Business
- Hans India
Nifty 50 vs Nifty Midcap: Which Index Should You Watch in a Volatile Market?
Investing in the Indian stock market can feel like a roller coaster, especially during volatile market conditions. While most traders and investors are familiar with the term Nifty 50, many often overlook the Nifty Midcap index. But which of these two indices should you really be watching when the markets get turbulent? This comprehensive guide aims to break down the core differences, strengths of each index in a volatile Indian market. Whether you're a new trader or a seasoned investor, this will help you make informed choices during uncertain times. Understanding the Basics of Nifty 50 and Nifty Midcap The Nifty 50 is a benchmark index comprising 50 of the largest and most liquid stocks listed on the National Stock Exchange (NSE). It is widely regarded as a reflection of the Indian economy. The Nifty Midcap index, on the other hand, comprises companies that rank below the top 50 in terms of market capitalisation. It represents mid-sized firms that may not have the legacy or clout of large-cap companies, but often offer greater growth potential. Why Size and Liquidity Matter in Volatile Markets During times of market stress, investors tend to flock towards safety—and in the stock market, safety often means liquidity and size. The constituents of the Nifty 50 typically have: Strong balance sheets Wider analyst coverage Institutional investor interest Better corporate governance These traits make Nifty 50 stocks relatively more stable and less volatile during downturns. Midcap stocks, being smaller in size, may not always have the same stability. In volatile markets, they might see sharper price swings—both upwards and downwards. But that doesn't mean they are to be ignored. Nifty 50: The Defensive Play in Turbulent Times If you are a conservative investor or someone looking to preserve capital during a bear phase, the Nifty 50 offers a safer haven. Let's consider the March 2020 market crash caused by the COVID-19 pandemic. The Nifty 50 fell nearly 38% from its January highs to March lows. In contrast, the Nifty Midcap 100 dropped by over 45%, showing that midcap stocks tend to fall harder during panics. But here's the twist—Nifty 50 also recovered faster because of strong institutional buying and resilient fundamentals of its constituents like Reliance Industries, Infosys, and HDFC Bank. Nifty Midcap: Higher Risk, Higher Reward? If you're willing to stomach volatility for higher long-term returns, midcap stocks might deserve a closer look. Historically, midcaps have outperformed large caps over longer time horizons. According to NSE data between 2005 and 2020, the Nifty Midcap 100 delivered around 15-17% CAGR, while the Nifty 50 trailed at 11-13%. This higher return comes at the cost of higher risk. In volatile times, midcaps may experience temporary drawdowns, but these can also present entry opportunities for savvy investors. For instance, companies like Dixon Technologies, Deepak Nitrite, and Indian Hotels, once considered midcaps, have delivered multi-bagger returns and even graduated to large-cap status. Sectoral Exposure: What Do the Indices Really Represent? The Nifty 50 has a higher concentration of banking, IT, and oil & gas sectors. So, any macro event that affects these industries heavily impacts the index. The Nifty Midcap, in contrast, is more diversified across sectors like industrials, healthcare, chemicals, and consumer goods. This offers a broader participation in India's growth story, especially in emerging sectors. During volatile times, certain sectors like healthcare or FMCG tend to outperform. Nifty Midcap gives you access to such sectoral plays that may not be well-represented in the Nifty 50. Valuation Metrics: A Closer Look During Uncertainty Evaluating the Price to Earnings (P/E) and Price to Book (P/B) ratios of both indices helps in making tactical decisions. Nifty 50 P/E often remains elevated due to investor trust in blue-chip companies. Nifty Midcap P/E may look cheaper during downturns but comes with uncertainty in earnings. During volatile times, when the entire market is correcting, midcaps often look undervalued. For long-term investors, this could be an opportunity to accumulate quality midcaps at discount. Case Study: The 2022 Volatility In early 2022, amid rising interest rates and geopolitical tensions, the Indian market saw heightened volatility. While the Nifty 50 managed to stay relatively resilient, supported by heavyweight stocks, the Nifty Midcap index saw deeper cuts—especially in sectors like real estate and logistics. However, within months, several midcap stocks started outperforming their large-cap peers. This pattern shows that midcaps are typically the first to fall and first to rise in a market cycle. Who Should Watch Which Index? Nifty 50 – Ideal For: Risk-averse investors Retirement portfolios SIP-based passive investing Capital preservation in high-volatility environments Nifty Midcap – Ideal For: Aggressive investors Those with a 5-10 year investment horizon Opportunistic traders during market dips Investors seeking diversification beyond blue chips Key Differences Between Nifty 50 and Nifty Midcap Parameter Nifty 50 Nifty Midcap Risk Lower Moderate to High Return Potential Moderate High Volatility Lower Higher Liquidity Very High Moderate Institutional Interest High Moderate Ideal For Conservative Investors Aggressive Investors Strategy Tips During Volatility Diversify across both indices using index funds or ETFs. Avoid lump-sum investing; consider Systematic Investment Plans (SIPs). Use volatility as a friend—buy quality midcaps during dips, but stay within your risk appetite. Keep track of the India VIX Index, which signals expected market volatility. Avoid getting swayed by media noise—focus on fundamentals and valuations. Conclusion: What Should Indian Traders and Investors Do? When markets are swinging wildly, it's natural to look for a safe place. For most investors, the Nifty 50 offers a shield—liquidity, resilience, and predictable performance. But if your risk appetite allows, selectively adding Nifty Midcap exposure during corrections can significantly boost long-term returns. The smart strategy is not to pick one over the other but to maintain a balanced exposure, adjusting weights based on market conditions. In short, the Nifty 50 provides stability, while the Nifty Midcap provides growth. Both indices reflect India's evolving economic story, and a wise investor knows how to ride both waves. Overall, In a volatile Indian stock market, understanding the nuances between these two indices can guide you to better, more confident decisions. Watch the Nifty 50 for cues from large players, but don't ignore the Nifty Midcap—it's where tomorrow's giants are often born.
India Today
3 days ago
- Business
- India Today
Sensex ends 138 points lower, Nifty below 24,900; Titan down 2%
Benchmark stock market indices closed lower on Wedneday, despite trading in green for almost the whole day as tensions between Israel-Iran weighed on Dalal S&P BSE Sensex was down by 138.64 points to close at 81,444.66, while the NSE Nifty50 lost 41.35 points to end at 24, Nair, Head of Research, Geojit Investments Limited, said that the domestic market failed to maintain the opening gains as the continuing tensions in the Middle East & volatility in oil prices dragged the overall sentiment."However, auto & consumer discretionary gained in expectations of a demand revival. With the supportive base of the domestic macros, the long-term outlook remains intact, and investors are likely to be focused on high-quality large-cap stocks until greater clarity emerges," he Bank topped the gainers with a 4.44% jump, followed by Titan up 2.21%, Mahindra & Mahindra gaining 1.24%, Maruti Suzuki rising 1.12%, and Asian Paints adding 0.63%.TCS fell 1.79%, Adani Ports dropped 1.55%, Hindustan Unilever declined 1.34%, Nestle India was down 1.25%, and Bajaj Finserv slipped 1.19%."Investors will keep an eye on US Fed policy later today; the prospect of higher inflation due to the tariff threat may lead the FOMC to keep the rates unchanged," said Nair. The broader market indices closed lower with Nifty Midcap falling 0.46%, Nifty Smallcap down 0.23%, while India VIX dropped 0.88%. Only three sectors managed to close in positive territory - Nifty Consumer Durables gained 0.79%, Nifty Private Bank rose 0.39%, and Nifty Auto added 0.37%.Most other sectors ended in the red. Nifty Media led the decline with a 1.27% fall, followed by Nifty IT down 0.83%, Nifty Metal falling 0.72%, Nifty Healthcare dropping 0.59%, Nifty Realty declining 0.47%, Nifty FMCG slipping 0.47%, Nifty Oil & Gas down 0.48%, Nifty PSU Bank falling 0.41%, Nifty Financial Services declining 0.31%, and Nifty Pharma losing 0.16%.advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Time of India
6 days ago
- Business
- Time of India
Which equity market cap segment gave most returns in 11 years? Here's an annual performance tracker
Large caps shine, smaller peers struggle Academy Empower your mind, elevate your skills *2025 returns are YTD and are based on 10 June 2025 closing values. Other years' returns are calculated using closing values of indices between the first and last trading day. Indices considered- Large-cap: Nifty 50 TRI, Mid cap: Nifty Midcap 150 - TRI, Micro cap: Nifty Microcap 250 - TRI, Small cap: Nifty Smallcap 250 - 100 stocks by market capitalisation fit in the large cap universe, considered relatively stable. These are widely preferred during market volatility and corrections. The large-cap benchmark has gained the most among categories in 2025 so far. Valuations remain reasonable, with the benchmark's PE at 22.6 times versus its 5-year average of that rank between 101 to 250 in terms of market cap belong to the mid cap universe. The segment underperformed the micro cap benchmark continuously for five years between 2020 and 2024. The valuations are expensive as the benchmark's current PE at 34.9 times is at a 55% premium to the large cap are stocks ranked 251 onwards by market cap. The benchmark delivered healthy returns in four of five years between 2020 and 2024, supported by strong MF inflows. However, valuation and earnings growth concerns have dragged the category to the second-worst performer in 2025 so far. The benchmark's current PE of 33.3 times is 47% above the large-cap with a six-month average market cap rank between 351 to 675 and those not part of the Nifty 500 index are included in the micro cap benchmark. This category was the top performer since the Covid-19 pandemic. However, strong selling in the first three months of 2025 made the micro cap benchmark the worst-performing segment among on average return and standard deviation of benchmarks over the past 11 years, the largecap benchmark offers the most optimal risk-to-reward ratio. In contrast, the micro cap benchmark has the most sub-optimal ratio, calculated using the coefficient of variation.
