D-Street starts FY25 on high note, mid- and small-caps rebound
benchmark indices hitting all-time highs in the first trading session of FY25. Mid-caps and small-caps rebounded on Monday after a weak show in March, as investors lapped up beaten-down names in that space on hopes these stocks could repeat their historically strong performance in April.
NSE's Nifty rose 135 points, or 0.61%, to close at 22,462 after touching an all-time high of 22,529 earlier in the day. BSE's Sensex rose 363 points, or 0.49%, to end at 74,014 off the record high of 74,254 during the day. The record closing levels for the Sensex is 74,119 and for the Nifty is 22,493 hit on March 7.
«The April month has seasonally remained strong for Nifty, and a bounce-back in the markets was due after the corrections seen in March,» said Apurva Sheth, head of research at Samco Securities.
In the past 14 years, Nifty Midcap 100 and Smallcap 100 indices have closed higher on 11 occasions. The midcap index has posted average gains of 3.127%, and the Smallcap 100 index has returned 4.44% on average during the month, said Sheth.
«April is also the most positive month of the year for mid- and small-caps,» he said.
Nifty's Midcap 100 index gained 1.74% and Smallcap 100 Index was up 3.26% on Monday.
The outlook for mid-cap stocks is better than that for small-caps, said analysts. «While there was a lot of action in the small- cap and the mid-cap space, we feel the mid-cap space is a lost safer bet as it has a higher relative strength,» said Sudeep Shah, head of technicals and derivatives research at SBI Caps.
Shah
