The BSE mid-cap index hit an all-time high on Tuesday, on a day when the Sensex regained the 28,000 mark.
Intraday, the index hit an all-time high of 13,182 points and gained as much as 0.9%. It ended at 13,168 points, up 0.80% from the previous close. So far this year, the index has gained 18.2%. Year-to-date, Sensex and Nifty have gained 8.5% and 10.04%, respectively.
Public sectors banks (PSBs) rallied the most as Oriental Bank of Commerce, Allahabad Bank, Union Bank, Bank of India climbed in the range of 4.7% to 7.8%. Other PSBs such as Canara Bank and IDBI bank rose 2.9% and 2.6% respectively.
According to market participants, the rally in mid-cap stocks is in line with the generally positive trend in the market.
“It is a broad-based rally, there is an expectation of revival in the Indian economy. Many factors like the good monsoon, the announcement of seventh pay commission and lower oil prices are contributing to this trend,” said Gopal Agrawal, chief investment officer (CIO) of Mirae Asset.
Among the BSE mid-cap index stocks Indian Bank, Piramal Enterprises and Yes Bank are the top gainers for the year to date, logging gains of 98%,88%, and 86% respectively.
On whether the rally would sustain, Agrawal said he expects mid-cap stocks to generate reasonable returns for the next two to three years as the economy is expected to be on growth track.