92% of Nifty Midcap 100 stocks gain in November; PFC, Prestige Estate top the list

Meanwhile, it also hit a record high in intra-day deals today, December 1, along with the small-cap index as well as the benchmark Nifty.

In today’s deals the Nifty Midcap 100 index hit a record high of 43,385, breaching the 43,000 mark for the first time ever. Meanwhile, the Nifty 50 rallied over 153 points to touch a new high of 20,286.30 in intraday trade today, surpassing its earlier record high of 20,222.45 hit on September 15 this year.

The surge comes on the back of positive market sentiment driven by better-than-expected GDP growth in the September quarter, FPIs returning as buyers in November, a decline in US treasury yields and a fall in oil prices. Moreover, upgrades by various brokerages on FY24 India GDP growth has also aided the gains.

Stocks

In the Nifty Midcap index, 12 stocks gave over 20 percent returns while 8 were in the red.

Power Finance Corp was the top gainer, soaring 42 percent, followed by Prestige Estates, up 39 percent, HPCL, up 35 percent, BHEL, up 33 percent, and Torrent Power, up 30.5 percent.

Trent, REC, PB Fintech, Alkem Labs, TVS Motor, Aurobindo Pharma and YES Bank also advanced between 20 and 29 percent.

However, Whirlpool was the top loser, shedding 12 percent, followed by Indian Bank, down over 6 percent, Linde India, Vodafone Idea, Tata Communications, Delhivery, Zee Entertainment, and AB Capital, down between 1 and 4 percent each in November.

Should you buy midcaps?

Despite the surge in mid-cap stocks, most experts advise investors to remain cautious before heavily investing in these stocks. Experts suggest investors to take a stock-specific approach if they wish to accumulate more stocks from this space.

“Midcaps and smallcaps usually are subject to higher volatility, especially when their valuations are on either extreme. Currently, a good chunk of small and mid-cap stocks is trading at higher valuations. Whenever there is such a scenario, even a small negative news has a larger impact on the stock prices which we witnessed a few days back even though it was temporary. So, yes at least in the near term, we see more valuation comfort in the largecaps and larger midcaps,” said Viraj Gandhi, CEO, SAMCO MF.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes the overall market momentum is likely to sustain since the incoming data and news are positive.

Vijayakumar pointed out that the Q2FY24 GDP growth rate at 7.6 percent surpassed expectations, particularly, the 13.9 percent growth in manufacturing and 13.3 percent growth in construction are impressive numbers. This has the potential to push the FY24 GDP growth rate to above 6.8 percent, significantly higher than the RBI’s projection of 6.5 percent, Vijayakumar said.

Moreover, the exit poll results indicate a high possibility of political stability after the General Elections. The market will appreciate this, he added.

Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Updated: 01 Dec 2023, 04:42 PM IST