On Wednesday, the Nifty Midcap 100 index rose over 0.5% to cross the psychological level of 20,000 for the first time in over two years. The index climbed to an intraday high of 20,026.65, a strong rebound from its March lows. It is up about 70% from 1 April this year.
Meanwhile, large-cap indices Sensex and Nifty 50 opened flat on Wednesday. Nifty 50 erased minor gains to slip to 13,068.30 while Sensex was down 0.5% to 44,454.88 around 10:30 am.
Analysts see further gains in the broader markets despite record runs seen in large-cap indices due to strong foreign fund inflows and the positive news on COVID-19 vaccine.
"In the coming month, we maintain our overall constructive stance with an incremental shift to broader markets, as the Nifty is expected to undergo consolidation amid positive bias in the range of 12800-13200 after a sharp 14% rally in November," said ICICI Direct.
ICICI Direct expects Nifty Midcap 100 to outperform Nifty 50 as the index has resolved from a three-year falling channel, indicating a fresh structural bull market.
"Historically, each up leg in the bull market over the past decade has averaged 44%. We expect the index to maintain this rhythm and head towards life highs of 21840 levels over the next few months," the brokerage firm said.
The Nifty Midcap 100 Index is designed to capture the movement of the midcap companies in the Indian market. It comprises of 100 tradable stocks listed on the National Stock Exchange (NSE). It is computed using free-float market capitalization method, wherein the level of the index reflects the total free-float market value of all the stocks in the index relative to particular base market capitalization value.