In the Nifty Midcap 150 and Smallcap 250 indices, 20 stocks have contributed to roughly 50% of the respective index’s rally this yr, in accordance with an ET research. This means 13% of the shares in Midcap 150 and eight% of the shares in Smallcap 250 have completed the majority of the heavy lifting thus far in 2024.
The Midcap 150 index has returned 21.86% and the Smallcap 250 index has superior 21.13% in 2024 thus far, outperforming the benchmark Nifty, which has gained 8.35% in this era. All three indices hit record highs on Tuesday, extending their record-breaking rally.
Money managers say narrowing contributions to the positive aspects of these indices present discomfort over the extent of the run-up in these shares.
“Directionally the momentum for these seems to be sturdy, however valuations have change into very excessive, and any sentiment change could result in a fall,” stated Phanisekhar Ponangi, chief funding officer at MavenArk Asset Managers.
The shares which have contributed essentially the most to the positive aspects in the mid-cap and small-cap indices are PSUs, financial services, infrastructure, and energy companies. Some of the highest contributors to the positive aspects in the midcap index, which notched up practically 36,36 factors positive aspects since January, have been Hindustan Zinc, Macrotech Developers, JSW Energy, and Cummins India.
In the smallcap index, which gained 2,878 factors, the contributors to the up-move have been Indian Overseas Bank, Cochin Shipyard, Housing & Urban Development Corporation, Motilal Oswal Financial Services and Exide Industries, amongst others.
