Small & Midcaps Outperform Large Caps In The Week Of Record Gains

It was a significant week for the two benchmark indices of the Indian markets. NSE's Nifty50 hit a fresh record high above 14,300 for the first time while the S&P BSE Sensex has been inching closer towards 49,000.

However, action in broader markets was dramatic, hitting fresh record highs.

While BSE's Sensex was up 1.9% during the week ended 8 January and Nifty 50 closed with gains of 2.3%, the BSE Midcap index and the BSE Small-cap index rose 5.3% and 3.5%, respectively, in the same period.

The top 5 gainers on the BSE 500 index that rose 20% to 40% during the week were Rail Vikas Nigam Ltd (39.54%), Trident Ltd (35.97%), Hindustan Zinc (26.95%), Alkyl Amines Chemicals Ltd (24.42%) and Shriram Transport Finance Company (21.12%).

Gains in stocks in all the Indian stock market has been supported by positive global cues, vaccine rollout, macro data and consistent inflows from foreign investors who have already poured Rs 9,000 crore into the Indian equities so far in 2021.

Analysts believe that the reverse in tide after three bearish year in the midcap and small-cap space is due to the economic recovery cycle, wherein companies in these segments are expected to outperform large caps when GDP growth accelerates.

In the coming week, movement in the market may be dictated by macro data and global cues. CPI data, Industrial Production data, and WPI Data for December, are scheduled to be released.