Smallcap, midcap indices up over 30% so far in 2023, nearly 100 stocks in green; What's fueling the rally?
macroeconomic data, while sustained buying by domestic investors and the possibility of a pause in rate hikes by the US Federal Reserve added to the rally, despite a poor monsoon, a strong US dollar, higher bond yields and a surge in crude oil prices. In this week, the Nifty50 gained 1.97 per cent or 384.7 points to close at 19,820, while BSE Sensex added 1.85 per cent or 1,211.75 points to close at 66,598.91.
The blue-chip Nifty 50 and Sensex indexes recovered around 3 per cent from the near two-month lows hit late August after data showed that India's first-quarter gross domestic product (GDP) grew at 7.8 per cent, the fastest in a year. Small- and mid-cap stocks extended their record run and yet again outperformed the benchmark indexes, rising 0.6 per cent and 1 per cent respectively.
They are up 32 per cent and 30 per cent, respectively, so far this year, outperforming the 9 per cent gains in blue-chip indexes. On Friday, September 8, the BSE Midcap index closed with a strong gain of 0.92 per cent at 32,672 after hitting its fresh record high of 32,692.74 during the session.
The BSE Smallcap index also hit its fresh record high of 38,369.21 during the session but ended at 38,266.53, up 0.43 per cent. MORE TO COME… Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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