look news india
It has been observed that the midcap and smallcap indices have performed better till the year 2024. New records are being made in this segment. But the ground reality is that everything is not fine. Both these sector indices are moving ahead strongly.
Not all stocks in the sector have shown such strength. Looking at the picture the benchmarks are painting, it seems that optimism is not so widespread. Twenty stocks in the Nifty Midcap 150 and Smallcap 250 indices have contributed nearly 50 per cent of the index gains this year. More specifically, only 13 per cent of the stocks in the Midcap 150 index and only eight per cent of the stocks in the Small-cap 250 index have led the index gains so far this year. The Midcap 150 index has given a return of 21.86 per cent while the Smallcap 250 has given a return of 21.86 per cent. The good performance of the benchmark has led to a gain of 8.35 per cent in the Nifty so far in 2024. In such a situation, any change in market sentiment will cause a decline, which can lead to huge losses for investors.
Money managers believe that the contribution of most mid-cap and small-cap stocks to the rally witnessed in the mid-cap and small-cap indices has been very limited, which is not fair, as the rally has not been broad-based and only a few stocks have led the way in the indices PSU, financial services, infrastructure and energy companies led the rally in the mid-cap and small-cap indices. Some of the top contributors to the midcap index's gain have gained around 36 points since January. These include Hindustan Zinc, Macrotech Developers, JSW Energy and Cummins India.
