MidCap stocks surge to new highs for third straight day

By: | Published: July 17, 2015 3:16 PM

The CNX MidCap index was trading up 0.4% or 53.70 points at 13734.60 at 2:20pm IST. The BSE MidCap index advanced 0.2% or 22.19 points at 11220.43.

SENSEX AND NIFTYThe CNX MidCap index was trading up 0.4% or 53.70 points at 13734.60 at 2:20pm IST. The BSE MidCap index advanced 0.2% or 22.19 points at 11220.43. (PTI)

Mid-cap stocks scaled to new highs for the third consecutive session on Friday driven by renewed buying interest after the Greek law-makers approved new austerity measures and European finance chiefs agreed to provide bridge financing and the blueprint for a three-year rescue plan. US’ nuclear deal with Iran and the decline in crude oil prices further boosted sentiment, analysts said.

The CNX MidCap index was trading up 0.4% or 53.70 points at 13734.60 at 2:20pm IST. The BSE MidCap index advanced 0.2% or 22.19 points at 11220.43.

Experts said global cues have been positive in the last 8-10 days as Greece crisis was averted as Euro-zone struck a deal with Tsipras averting a possible exit of Greece from Euro. US has signed the landmark nuclear deal with Iran, driving Brent crude oil prices to below $57 a barrel. Brent crude oil futures on the Intercontinental Exchange have lost nearly 20% from May. Brent crude now trades around at five-and-a-half month lows, data showed.

HDFC securities in a morning note to investors observed that boarder markets were in a much healthier state than what benchmark indices indicate. “… 41% of all the stocks are higher than their March 4 highs. Amongst those listed on the NSE, 44% of the stocks are higher than their March 4 levels,” stated the Mumbai-based financial services firm in its note.

Mindtree was the top gainer in the Midcap space after the June quarter earnings were at part with the Street expectations. The Bangalore-headquartered technology reported a 7.4% jump in quarterly net  profit driven by currency gains. Revenue increased by 6.9% quarter-on-quarter, while the dollar revenue increased 4.8%, better than forecast.

Reliance ADAG group company Reliance Infra and Reliance Capital rose more than 3% each. Engineering and IT services company, KPIT Cummins also gained 3%.

Experts said that markets are now finding solace in US Federal Reserve’s path to monetary policy. Fed Chair Janet Yellen’s testimony that raising interest swiftly could threaten the recovery also boosted sentiment.

“My own preference would be to be able to proceed to tighten in a prudent and gradual manner,” she said in the testimony. Yellen also noted that the Federal Reserve would be looking at the improvement in labour markets and will refrain from raising rates as they might threaten the recovery.

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