BSE Midcap index in focus: L&T Fin, UPL at 52-week high, see stock strategy

Business Standard

3 days ago

Shares of midcap companies were in focus on Monday, with the BSE Midcap index outperforming the broader market in intra-day trade, driven by a rally of over 2 per cent in stocks such as L&T Finance, UPL, Jindal Stainless, Supreme Industries, and Ashok Leyland.
As of 01:37 PM: BSE Midcap index, the top gainer among broader indices, was up 0.55 per cent, as compared to 0.38 per cent rise in the BSE Sensex and 0.09 per cent gain in the BSE Smallcap index.
In the past month, BSE Midcap indeed has gained 3.3 per cent, as against a marginal 0.2 per cent rise in the BSE Sensex. However, the BSE Smallcap index has rallied 5 per cent during the period.
Dalmia Bharat, Muthoot Finance, UPL, Vishal Mega Mart and L&T Finance from the BSE Midcap index have hit their respective 52-week highs in intra-day trade today.
Stocks driving the rally
Among the individual stocks, L&T Finance has surged 5 per cent to ₹212.75 after the non-banking finance company (NBFC) reported a steady performance in June 2025 quarter (Q1FY26) with visible recovery in rural portfolios.
Business growth remained a tad slower, excluding acquired portfolio. Collection efficiency remained steady in rural finance, though management commentary is awaited on future trend, ICICI Securities said in a note.
Shares of UPL hit a 52-week high of ₹712.75, soaring 4 per cent in intra-day trade. The stock price of pesticides & agrochemicals has rallied 12 per cent on a healthy business outlook.
Looking ahead, domestic growth of crop protection market in FY26 is expected to gain momentum, driven by favourable monsoon forecasts, stable commodity prices, and robust sowing activity.
On the export front, a recovery is projected in the second half of FY26, as international markets stabilise and inventory destocking by distribution channels nears completion. However, historically low realisations will continue to weigh on growth, preventing a return to the double-digit figures. This comes despite ongoing pricing pressures from oversupply in China, albeit less acute than last year. This trend is expected to persist, resulting in fewer inventory write-offs.
Moreover, improved volumes should bolster the sector's profitability. Operating margins are also on a slow path to recovery. Controlled debt and a gradual rebound in operating profitability will help sustain stable debt-protection metrics over the near to medium term, UPL said in its FY25 annual report.
Share price of Nippon Life India Asset Management (NAM India) was up 4 per cent to ₹871.1 in intra-day trade. In the past month, the stock has rallied 19 per cent. NAM India is a leading asset manager with a strong track record in India. The company provides a diverse range of investment products, including Mutual Funds, ETFs, Managed Accounts (including AIF and PMS), Offshore Business and GIFT City products, serving a wide base of investors.
Given the low level of Mutual Fund penetration in India (only 4 per cent of India's population invests), there exists a vast growth opportunity going forward. This will be further amplified as India continues down its path to become the third largest economy in the world, which will see a gradual increase in Per Capita Income for the population (currently at only $2,500), NAM India said.
Analysts at InCred Equities said they appreciate the overall healthy scheme-wise delivery by the industry, which, in turn, continues to attract equity asset under management (AUM).
The brokerage firm believes the following key catalysts will continue to aid the inflow momentum - improving capital market sentiment and rising purchasing power, especially of the younger demographic segment, and falling interest rates. Healthy equity fund inflows are aiding the yield movement, and analysts expect overall yields to remain healthy in the medium term.