Latest news with #NiftyMidcap100
Mint
11 hours ago
- Business
- Mint
Market volatility hits mid and small-caps: Are large-cap stocks a safer bet now?
The recent volatility in the Indian stock market has taken a toll on mid- and small-cap stocks, as investors grow increasingly cautious amid global uncertainty and elevated valuations, prompting them to exit these segments in search of safer bets in large-cap stocks, which are often perceived as more stable during turbulent phases. Global markets have been on edge this week, with the latest escalation between Iran and Israel adding fresh strain to an already fragile global economy—one still grappling with the effects of trade tensions and the ongoing Russia–Ukraine war. However, the Indian stock market managed to end the week with healthy gains, supported largely by strength in blue-chip stocks. Despite rising crude oil prices, prolonged trade tensions, and limited progress in negotiations between the US and its key trading partners, Indian large-cap stocks have continued to draw investor interest. Optimism around corporate earnings—buoyed by a turnaround seen in the March quarter and expectations of stronger performance in the June quarter of FY26—along with relatively reasonable valuations compared to mid- and small-cap counterparts, has led investors to shift their focus toward these more established, higher-priced stocks. Against this backdrop, both the Nifty 50 and Sensex closed with gains of nearly 2%, while the Nifty Midcap 100 and Nifty Smallcap 100 indices remained under pressure for the second consecutive week, each declining by up to 1%. Recent data also indicates a shift in retail investor preference toward large-cap stocks, as ownership in mid- and small-cap counters fell to a nine-quarter low amid a broader market sell-off during the March 2025 quarter, according to the NSE's report titled India Ownership Tracker. During the March quarter, mid- and small-cap stocks underperformed their large-cap counterparts, further amplifying valuation concerns in these segments. According to the latest analysis by domestic brokerage firm Kotak Institutional Equities, small caps led the earnings cuts, with a 6% reduction in FY2026 EPS estimates compared to a 2% cut for large caps and 3% for mid-caps. On the valuation front, the Nifty SmallCap 100 is trading at a one-year forward price-to-earnings (P/E) multiple of 27.2x—significantly higher than its long-term average and close to the Nifty MidCap 100's P/E of 28.3x. This sharp rise in valuations places the Nifty SmallCap 100 near its historical peaks, levels last seen during previous phases of overheated sentiment, such as mid-2021 and pre-2018, according to domestic brokerage firm InCred Equities. In contrast, the Nifty 50 is trading at a more reasonable 20.7x forward P/E. The narrowing valuation gap between small- and mid-cap stocks is making investors uncomfortable. Analysts believe this has prompted a shift in investor focus toward large-cap stocks. Looking ahead, analysts expect small and mid-cap stocks are likely to underperform in the short term, given their elevated valuations and absence of short-term triggers. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, "The recent weakness in the broader market is likely to continue since they are excessively valued, and the ongoing risk-off can lead to further selling in this segment. Money may move from the overvalued SMIDs to the fairly valued, safe large caps in financials, industrials, autos, and real estate." 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.
India Today
12 hours ago
- Business
- India Today
Sensex ends 1,046 points higher, Nifty above 25,100; Bharti Airtel jumps 3%
Benchmark stock market indices rallied on Friday, with Dalal Street adding over 1%, ending the week on a high note. Heavyweight financial and banking sector stocks surged, pushing markets S&P BSE Sensex jumped 1,046.30 points to end at 82,408.17, while the NSE Nifty50 added 319.50 points to close at 25, Nair, Head of Research, Geojit Investments Limited, said that the equity indices surged as Middle East tension moderated with risk of immediate military actions reduced as US dialogue with Iran is expected to take development led the crude price to correct, favouring domestic markets and boosting foreign investors' sentiments," he Airtel topped the gainers with an impressive 3.27% surge, followed by Mahindra & Mahindra up 2.93%, PowerGrid rising 2.38%, Reliance Industries gaining 2.16%, and Nestle India adding 1.97%. On the losing side, Maruti Suzuki was the only major decliner, falling 0.02% in an otherwise positive session for the index."In the broader market, rapid fall in VIX index and buying was witnessed in rate sensitives and consumer oriented sectors like Finance, Auto and Reality and in anticipation of better Q1 FY26 results led by rate cuts benefits, drop in inflationary pressure and rebound in consumer spending," said broader market indices ended strongly with Nifty Midcap 100 gaining 1.46%, Nifty Smallcap up 1.01%, while India VIX fell 4.08%.All sectoral indices closed in positive territory, led by Nifty Realty surging 2.11%, followed by Nifty PSU Bank up 1.64%, Nifty Financial Services gaining 1.49%, Nifty Metal rising 1.39%, Nifty Healthcare adding 1.07%, Nifty Auto up 1.04%, Nifty Private Bank gaining 1.03%, Nifty Oil & Gas rising 0.91%, Nifty IT adding 0.84%, Nifty Pharma up 0.80%, Nifty Consumer Durables gaining 0.73%, Nifty FMCG rising 0.64%, and Nifty Media advancing 0.35%.advertisementThere were no sectors in the red as the market witnessed broad-based buying across all segments. Realty and PSU banks led the rally while all other sectors participated in the positive closing session on Friday.(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.)
India Today
15 hours ago
- Business
- India Today
Sensex opens 228 points higher, Nifty above 24,800; Nestle gains 1%
Benchmark stock market indices opened higher on Friday, possibly due to buying from investors, amid rising tensions between Israel and Iran, leading to cautious sentiment on Dalal S&P BSE Sensex was up 160.43 points to 81,522.30, while the NSE Nifty50 gained 36.45 points to 24,829.70 as of 9:23 VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that Nifty which has been trading within the 24500-25000 range for about a month now is likely to remain within this range in the near-term."The upper side of the range will be broken only on news of deescalation of the Israel-Iran conflict or an abrupt end to the war. There is uncertainty on this. The lower side of the range is unlikely to break since big buying, particularly by domestic institutions, will emerge on dips. If the war lingers and crude rises beyond $85 the lower band of the range will be broken," he & Mahindra led the early gainers with a 1.01% jump, followed by Bharti Airtel up 0.71%, Eternal up 0.70%, UltraTech Cement gaining 0.61%, and HDFC Bank rising 0.57%. On the losing side, IndusInd Bank dropped 0.90%, Bajaj Finance fell 0.49%, Tech Mahindra declined 0.37%, Kotak Mahindra Bank was down 0.21%, and Tata Motors slipped 0.10%.The broader market indices opened with mixed signals as Nifty Midcap 50 gained 0.04%, Nifty Midcap 100 rose 0.05%, while Nifty Smallcap fell 0.10% and India VIX dropped 4.15%.Among sectoral indices, several posted gains including Nifty PSU Bank up 0.63%, Nifty Realty rising 0.41%, Nifty Financial Services gaining 0.33%, Nifty Healthcare adding 0.21%, Nifty Pharma up 0.12%, Nifty Auto rising 0.11%, Nifty Private Bank gaining 0.06%, Nifty Metal adding 0.04%, and Nifty FMCG advancing 0.01%.advertisementHowever, some sectors opened in the red. Nifty Media declined 0.66%, Nifty Consumer Durables fell 0.38%, Nifty Oil & Gas dropped 0.14%, and Nifty IT slipped 0.12%."A distinct feature of the market trend visible in yesterday's trade was the weakness in the broader market. While Nifty remained almost flat, SMIDs cracked with the smallcap index correcting sharply by 2%," said Vijayakumar."This trend of weakness in the broader market is likely to continue since they are excessively valued and the ongoing risk-off can lead to further selling in this segment. Money may move from the over-valued SMIDs to the fairly valued, safe largecaps in financials, industrials, autos and real estate," he added.(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
18 hours ago
- Business
- Hans India
Indian stock market opens higher amid positive Asian cues
The Indian benchmark indices opened higher on Friday amid positive Asian cues, as buying was seen in the PSU bank, IT and auto sectors in the early trade. At around 9.25 am, Sensex was trading 228.15 points or 0.28 per cent up at 81,590.02 while the Nifty added 55.10 point or 0.22 per cent at 24,848.35 Nifty Bank was up 102.35 points or 0.18 per cent at 55,679.80 The Nifty Midcap 100 index was trading at 57,143.10 after dropping 16.85 points or 0.03 per cent. Nifty Smallcap 100 index was at 17,950.60 after declining 62.50 points or 0.35 per cent. According to analysts, Nifty, which has been trading within the 24,500-25,000 range for about a month now, is likely to remain within this range in the near term. The upper side of the range will be broken only on news of de-escalation of the Israel-Iran conflict or an abrupt end to the war. "There is uncertainty on this. The lower side of the range is unlikely to break since big buying, particularly by domestic institutions, will emerge on dips. If the war lingers and crude rises beyond $85 the lower band of the range will be broken," said Dr. VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited. Meanwhile, in the Sensex pack, Bajaj Finserv, UltraTech Cement, M&M, Eternal, SBI, Axis Bank and Sun Pharma were the top gainers. Whereas, IndusInd Bank, Bajaj Finance, Tech Mahindra, Kotak Mahindra Bank and PowerGrid were the top losers. The foreign institutional investors (FIIs) extended their buying on the third consecutive day on June 19 as they bought equities worth Rs 934.62 crore. On the other hand, domestic institutional investors (DIIs) also extended their buying as they bought equities of Rs 605.97 crore on the same day. In the Asian markets, Bangkok, Japan, Seoul, Hong Kong and China were trading in green, while only Jakarta was trading in red. The US stock market was closed on Thursday in observance of Juneteenth National Independence Day. In the last trading session on Wednesday, Dow Jones in the US closed at 42,171.66, down 44.14 points, or 0.10 per cent. The S&P 500 ended with a loss of 1.85 points, or 0.03 per cent, at 5,980.87 and the Nasdaq closed at 19,546.27, up 25.18 points, or 0.13 per cent.
Indian Express
a day ago
- Business
- Indian Express
Why mid- and small-cap stocks witnessed selling pressure while Sensex, Nifty closed flat
Mid-cap and small-cap indices felt the heat on Thursday as investors became jittery amid growing uncertainties owing to an escalation in the Israel-Iran conflict. The Nifty Midcap 100 and the Nifty Smallcap indices fell 1.8 per cent and 2.28 per cent, respectively, during the intraday trades. The Nifty Midcap 100 plunged 1.83 per cent, or 1,061.75 points to a low of 57,047.45 in the intraday trades. The Nifty Smallcap 100 tanked 2.28 per cent, or 419.9 points, to a low of 17,958.55 during intraday trades. Both indices recovered mildly towards the end of the session, with the Nifty Midcap 100 settling 1.63 per cent lower and the Nifty Smallcap 100 down 1.99 per cent at market closing. In comparison, the benchmark indices, Sensex and Nifty, ended almost flat. The BSE's Sensex lost 0.1 per cent, or 82.79 points, to end at 81,361.87. The broader Nifty 50 declined 0.08 per cent, or 18.8 points, to finish at 24,793.25. Market analysts said that risk-off sentiments in the market is triggered by the crisis in West Asia and its economic fallout. During a risk-off period investors would prefer safe assets. The resilience in gold is due to this safe haven buying. 'In stocks, large caps are relatively fairly valued when compared with the mid- and small-caps, which are excessively valued. These excessive valuations are due to the sustained flows into these segments. It appears that investors are shifting from the risky over-valued mid- and small-cap segments to the safety of large caps,' said VK Vijayakumar, chief investment strategist, Geojit Investments Ltd. Whenever there is some kind of uncertainty in the market, retail investors tend to panic, which leads to heavy selling. This was evident in today's trading session, said G Chokkalingam, founder and head of research, Equinomics. From the Nifty Midcap 100 index, the companies that registered highest losses included Indian Renewable Energy Development Agency Ltd ( 4.3 per cent), Supreme Industries (4.22 per cent), Adani Total Gas Ltd (4.14 per cent), Rail Vikas Nigam Ltd (4.11 per cent) and LIC Housing Finance (3.78 per cent). Among the Nifty Smallcap constituents, firms that dropped the most included Brainbees Solutions (6.25 per cent), Inventurus Knowledge Solutions (5.54 per cent), Cyient Ltd (5.27 per cent) and Reliance Power Ltd (5 per cent).
