Latest news with #Midcap
Time of India
6 days ago
- Business
- Time of India
Nifty logs longest losing streak in 2 years: SBI Securities' Sudeep Shah on what traders should do now
Indian equity benchmarks extended their losing streak to a fifth consecutive week—marking the longest run of weekly losses since August 2023—as renewed global trade concerns and tepid corporate earnings weighed on sentiment. The Nifty 50 slipped 0.82% to 24,565.35 and the BSE Sensex ended 0.72% lower at 80,599.91 on key sectors, barring a few, ended in the red, with broader indices like the Nifty Smallcap and Midcap witnessing sharp
Economic Times
6 days ago
- Business
- Economic Times
Nifty logs longest losing streak in 2 years: SBI Securities' Sudeep Shah on what traders should do now
Indian equity benchmarks extended their losing streak to a fifth consecutive week—marking the longest run of weekly losses since August 2023—as renewed global trade concerns and tepid corporate earnings weighed on sentiment. The Nifty 50 slipped 0.82% to 24,565.35 and the BSE Sensex ended 0.72% lower at 80,599.91 on key sectors, barring a few, ended in the red, with broader indices like the Nifty Smallcap and Midcap witnessing sharp
Mint
28-07-2025
- Business
- Mint
Market Outlook: Why second half of 2025 could belong to mid-cap stocks
In the near term, the Indian market is expected to trade in a narrow range between 24,800 to 25,250 with a negative bias. Key support at the lower level is 24,500, and on the higher side, resistance is at 25,500. This is led by the confirmatory bias of the bazaar, looking forward to the upgradation of future earnings based on the Q1 results and reduction in tariff risk based on a firm inference from the upcoming US trade deal. As said market has a positive bias towards both the factors, hence maintaining the overall optimism in India trading near the 3-year high valuation of 21x forward P/E. Heightened selling by FIIs in India compared to other EM peers due to premium valuation is leading to deep underperformance in the near term. On the other hand, while DII inflows remain constructive, following the consistent accumulation over the past two to three months, the pace of buying has moderated, led by a muted start to the Q1 earnings. Q1 results commenced on a subdued note, primarily due to weaker-than-expected performance from the technology sector. Lately, some good sets of numbers, especially in sectors like banking and cement, have provided a boost to heavyweights. Midcap's earnings have also just started, and they are on a positive note. Broadly, based on the initial data, the total revenue growth of Indian corporates is at +5% with a 10 to 12% earnings growth, providing a positive outlook as the overall results are in line. Hence, the market has a view that this trend can deepen in H2 (July to Dec) based on a good monsoon, reduction in inflation (input cost), rate cuts, and a rise in consumption demand. This could be positive for Midcaps. Similarly, with regard to the U.S. trade talks, the market anticipates a favourable outcome for India, drawing confidence from the nature of recent agreements the U.S. has reached with the U.K. and Japan. Additionally, progress toward finalising the India-UK FTA has further contributed to the constructive outlook. For Japan, the reciprocal tariff has been cut from the proposed 25% to 15%. India is placed at a 26% reciprocal tariff threat. However, trade tariffs are likely to be high in the new protectionist world. Further negotiations are expected following the initial agreement to determine product- and sector-specific terms. These were the two key factors i.e., the downgrade in domestic earnings (lower earnings growth compared to high valuation) and the trade war, which affected the overall performance of H1 (January to June). The trend improved post-April as the risk started to subside. Hence, as the risk further subsides, we can expect a better half in CY25. 7.9 -2.7 Nifty 500 5.5 -2.6 Nifty Midcap 100 4.4 -2.9 Nifty Smallcap 100 1.6 -4.1 H2 has started on a muted note after a good April to June period. H1 was more positive for large caps, while for H2, there is a good chance that midcaps could outperform due to improvement in earnings outlook, reduction in risk, and premium valuation of large caps. That's why the market is trading on a volatile note, in a narrow range in anticipation of more details, which is expected to sustain only in the near-term, from Q1 and the trade deal. Lately, the volatility has increased as DIIs' buying has moderated while FIIs' selling continues. (The author Vinod Nair is Head of Research, Geojit Investments) Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
24-07-2025
- Business
- Economic Times
penny stocks: Small stocks, big surge: Over 50 microcaps soar up to 5,500% despite market turmoil
ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT Mumbai: The sell-off in equities since late September last year disrupted the widespread bullish sentiment that had existed till then. Yet, that has not stopped some stocks from soaring into the stratosphere since. At least 50 little-known smallcap, microcap, and penny stocks have returned between 200% and an eye-popping 5,500% since September 27 when the stock market selloffs began, ignoring the sharp swings in sentiment between risk-on and risk-off in the of these 50 top performers, 12 companies made losses at the end of FY25, while 19 have revenues of less than ₹10 crore, which is modest compared to their market value. The topper in the list is Maharashtra-based RRP Semiconductor , whose shares have shot up about 5,500% from ₹50.6 to ₹2,833. Its market capitalisation zoomed to ₹3,858.5 crore from ₹68.9 crore in September. The company posted a revenue of ₹32 crore and net profit of ₹8.5 crore in of other companies that saw outsized gains in this period are Elitecon International Kothari Industrial Corporation , Arunis Abode Rajasthan Tube Manufacturing. These stocks jumped between 1,000% and 4,800%. The Midcap 150 and Smallcap 250 indices are down 1.8% and 3%, respectively, while the Microcap 250 index has shed 4.8% from September 27."One could say that it is a mini-bubble in a group of penny stocks and one should be extremely careful not to get trapped with their core investment corpus in such stocks," said Vikas Gupta, CEO at OmniScience Capital. NACL Industries , Kothari Industrial Corporation, Midwest Gold, Gujarat Natural Resources, Naturite Agro Products Relic Technologies , Jattashankar Industries, Lyons Corporate Market, Darjeeling Ropeway Company , Sparkle Gold Rock and Arunis Abode, which have seen their shares zoom up between 200% and 1,700% in the past 11 months, made losses in FY25. "Most people buy these stocks as there is expectation of large business sometime in future or unlocking of some "hidden" or underutilized asset, driving the prices upwards," said Gupta. "Many traders buy on rumour in the hope of making money when the rumour is declared as an actual announcement."Out of the 50 shares that have moved up more than 200% since September, only 8 companies are the ones with a market cap to sales below five times and whose price to earnings (PE) ratio is between 0 and 50, which is a basic filter indicating some fundamental soundness, said Apurva Sheth, head of research at Samco exuberance in the microcap and penny stock space is, however, much more moderate than it was before Sebi cautioned investors against investing in the shares of unknown companies, highlighting instances where certain small and medium enterprises (SMEs) engaged in price manipulation by creating an unrealistic picture of their operations.'Most of the stocks from SME or microcap space have lower corporate governance standards and don't have institutional holding, thus investors would be better off staying away from them,' said Sheth. Gupta also advises investors to stay away from microcaps and penny stock space though there could be high-growth stories in their midst.'Of course, there can be exceptions; but are you expert enough to understand the exceptions? If not, stay away from such stocks,' said Gupta.
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Business Standard
15-07-2025
- Business
- Business Standard
BSE Smallcap index hits 6-month high, recovers 35% from April low
Shares of small-cap companies were in focus, with the BSE Smallcap index hitting a six-month high of 55,332.32 in Tuesday's intra-day trade. The index is trading at its highest level since January 8, 2025. It has recovered 35 per cent from its 52-week low of 41,013.68 hit on April 7, 2025. Currently, the BSE Smallcap index is 4.3 per cent away from its all-time high level of 57,827.69, touched on December 12, 2024. At 09:19 AM, the BSE Smallcap index, the top gainer among broader indices, was up 0.73 per cent, as compared to a 0.47 per cent rise in the BSE Midcap and a 0.16 per cent gain in the BSE Sensex. In the past month, the Smallcap index gained 3 per cent, as against a 1.5 per cent rise in Midcap and a 0.66 up move in Sensex. A total of 19 stocks, including Ceat, Allied Blenders and Distillers, Aarti Pharmalabs, Strides Pharma Science, Samhi Hotels, SML Isuzu, Thyrocare Technologies, Hawkins Cookers, CSB Bank and Dodla Diary from the BSE Smallcap index hit their respective 52-week highs in intra-day trade on Tuesday. Meanwhile, Force Motors, SML Isuzu, Sterlite Technologies, Suven Life Sciences, Lumax Auto Technologies, Gabriel India, Cupid, Banco Products and Camlin Fine Sciences from the index have seen their market values more than double from their April 7, 2025, levels. The other 200 stocks have appreciated between 40 per cent and 98 per cent. What's driving the rally? The recent correction in small caps presents a compelling entry point for long-term investors. Even though over 80 per cent of small-cap companies have posted strong profit growth of 38 per cent and solid return ratios, most of them are still trading 15-45 per cent below their 52-week highs. This recent market correction has opened up a clear gap between the true value of these companies and their current market prices. Coupled with structural tailwinds such as the 'Make in India' push, rising formalisation, and digital transformation across sectors, small caps are well-positioned to benefit disproportionately in the next growth cycle, making this an attractive investment opportunity, according to Bajaj Finserv AMC. On June 25, 2025, Bajaj Finserv AMC announced the launch of Bajaj Finserv Small Cap Fund, an open-ended equity scheme predominantly investing in small-cap stocks that offers quality, growth and value. The fund opened for subscription on June 27, 2025, and closed on July 11, 2025. Meanwhile, the first half of the last fiscal (FY25) saw significant upside, markets corrected sharply in the second half, with the Nifty 50 falling by 13 per cent from its peak in September 2024, led by mid-cap and small-cap underperformance, weak earnings, and foreign capital outflows. Despite the correction, long-term fundamentals remain intact, supported by structural reforms, rising retail participation, and improving valuations.
