The BSE Midcap index was up 0.67% and the BSE Small cap index gained 1% while the benchmark Sensex was trading close to 0.50% higher.
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For the second day straight domestic benchmark indices opened with gains. S&P BSE Sensex was trading over 150 points higher while the Nifty 50 was trading above the 11,450 mark. Yet again small and midcap stocks were outperforming blue chip scrips. The BSE Midcap index was up 0.67% and the BSE Small cap index gained 1% while the benchmark Sensex was trading close to 0.50% higher. Kotak Mahindra Bank and IndusInd Bank were the top drags while Titan, Sun Pharma, and Bajaj Finance led with gains. The volatility index slipped below 21 levels. All Nifty sectoral indices were trading with gains except Nifty Realty.
Small and midcap stocks rally: Yet again midcap and small cap indices were seen outperforming the benchmark peers. Nifty small cap 100 and midcap 100 were up over 1% each. Similarly the BSE Midcap index was up 0.67% and the BSE Small cap index gained 1%. With SEBI asking multi cap funds to allocate more funds to midcap and small cap stocks, the rally may extend if fund houses decide to abide by the new guidelines.
Top gainers: Titan, Sun Pharma, Bajaj Finance, and ICICI Bank were the top gainers on Sensex. On the BSE Midcap index, Mphasis and Crompton were the top performers. Among BSE Small cap constituents, JB Chemicals, ITD Cementation, and SREI infrastructure finance were the top gainers.
Drags: After recording massive gains on Monday, HCL Technologies and Tech Mahindra were the top drags on Sensex. HUDCO, NBCC, and BEL were top midcap drags. Among BSE Small cap constituents, Take Industries along with Vikas Ecotech were the top drags.
Global watch: NASDAQ ended yesterday’s trading session with gains along with Down Jones and S&P 500. Major Asian stock markets were trading with gains on Tuesday morning, except Topix and Nikkei 225 of Japan.
Technical take: “We are trading above the 11500 levels but I would still look out for the Nifty to trade in the 11550-11575 trading zone as that would signal that we are entering into a bullish zone. The support continues to be around the 11300 level,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.