Latest news with #NiftySmallcap250
Time of India
2 days ago
- Business
- Time of India
D-Street snaps 4-day rally on profit booking
Mumbai: India's broadest equity gauges Monday snapped a four-day winning streak to retreat from within 3% of life-time peaks, as investors looked beyond positive global cues and renewed foreign fund inflows to book profits in the absence of an express local trigger. The BSE Sensex fell 452.4 points, or 0.54%, to close at 83,606, while the NSE Nifty-50 shed 120.7 points, or 0.47%, to end at 25,517. The two indices had risen 2.7% over the past four sessions and posted gains of 3.1% and 2.7%, respectively, in June, marking their fourth straight month of advances. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Al Kadhimiya: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo Profit-booking and weakness in select sectors weighed on sentiment, even though markets had rallied sharply last week on the back of robust global signals and domestic institutional buying. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. "Last week, markets surged sharply driven by robust global signals and buying from domestic institutions, but profit-booking emerged, dragging down the benchmark indices," said Prashanth Tapse, senior VP (research), Mehta Equities. The broader market outperformed, with the Nifty Midcap 150 rising 0.6% and the Nifty Smallcap 250 gaining 0.8%. On BSE, out of 4,290 stocks traded, 2,362 advanced while 1,750 declined. Live Events India VIX, which gauges volatility, climbed 3.20% to 12.79. In other Asian markets, Japan's Nikkei gained 0.8%, while Hong Kong's Hang Seng lost 0.8%. Among sectors, auto and financial stocks dragged the benchmarks lower. The Nifty Auto index slipped 0.5%, while Nifty Financial Services fell 0.3%. Meanwhile, Nifty PSU banks, consumer durables and pharma were the top gainers. Within the stocks, top gainers on the Nifty included Trent, BEL, SBI, IndusInd Bank and Jio Financial Services. Tata Consumer Products and Kotak Mahindra Bank were among the major laggards. Tapse noted that trade negotiations with the US will remain a key focus in the near term. "The focus will be on tariff settlement with the US government, as the deadline is approaching and India has yet to conclude the agreement, which could create uncertainty among the investors." Shrikant Chouhan, head of equity research at Kotak Securities, believes that 25,470/83,500 will act as a key level to watch. Below 25,470/83,500, the markets could see a further correction toward 25,375-25,300/83,200-83,000. "On the flip side, a sustained move above 25,470/83,500 could push the market up to 25,600/83,900. Further upside may also continue, potentially lifting the market to 25,700/84,200." Foreign portfolio investors (FPIs) net sold shares worth ₹831.5 crore on Monday, BSE data showed. However, for the whole month of June, their total investment came to ₹7,489 crore. Domestic institutional investors (DIIs) bought shares worth ₹3,497 crore on Monday, taking their total investment for June to ₹72,676 crore.
Mint
6 days ago
- Business
- Mint
NSE Indices Rejig: NTPC, ICICI Bank to grab major chunk of inflows; BEL, M&M, Eternal to see outflows on rebalancing
The National Stock Exchange (NSE) is set to implement its quarterly reshuffle of key equity indices today. As part of the scheduled update, several broader market indices will see weight adjustments, while strategic indices will undergo inclusions and exclusions as part of their semi-annual rejig effective June 27, 2025. NSE strategic indices such as the Nifty 200 Momentum 30, Nifty Midcap 150 Momentum 50, and Nifty 500 Momentum 50 are scheduled for rebalancing on June 27. Simultaneously, broader indices like the Nifty 50, Nifty Next 50, Nifty Midcap 150, and Nifty Smallcap 250 will experience adjustments driven by changes in free-float market capitalization. NTPC is expected to see the highest cumulative inflows from the rejig of approximately $126 million, according to estimates by Nuvama Alternative & Quantitative Research. Other major gainers include ICICI Bank, with estimated inflows of $128 million across both broader and strategic indices, and Kotak Mahindra Bank, likely to attract $102 million. On the flip side, Bharat Electronics Ltd (BEL) is expected to witness the largest outflow, with $85 million moving out. Mahindra & Mahindra (M&M) and Eternal are also expected to see significant outflows of $81 million and $69 million, respectively. The quarterly rejig across broader indices such as the Nifty 50, Nifty Next 50, Nifty Midcap 150, Nifty Smallcap 250, Bank Nifty, and CPSE indices is primarily driven by changes in companies' free-float market caps. In these indices, major inflows are anticipated in NTPC ($126 million), ICICI Bank ($60 million), and Bharti Airtel ($32 million). Outflows are projected in BEL ($85 million), ONGC ($21 million), and Coal India ($20 million), as per Nuvama estimates. The semi-annual reshuffle of strategic indices, particularly the Nifty 200 Momentum 30 — one of the most tracked strategy indices — will lead to substantial reshuffling. ICICI Bank, NTPC, and Kotak Mahindra Bank are the key beneficiaries of this update as well. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
18-06-2025
- Business
- Business Standard
How to make money in stock market? Bet on small-caps, say analysts
Investing in quality small-cap stocks for the long-term is a good way to make money in the stock markets, suggest analysts. A recent note by Bajaj Finserv AMC suggests India's small-cap segment has delivered healthy growth over the past seven calendar years, with market capitalisation (market-cap) of this basket surging fivefold – from ₹17 trillion in 2017 to ₹92 trillion by the end of 2024 — reflecting a robust compound annual growth rate (CAGR) of 27.6 per cent during this period. In comparison, large-cap and mid-cap segments recorded CAGR of 14.5 per cent and 21.6 per cent, respectively, during the same period, Bajaj Finserv AMC shows. The contribution of small-caps to the overall market-cap has grown 1.4 times over the last three years, the note said. At the same time, their contribution to corporate profits has surged 2.5 times in the past four years. This trend, Bajaj Finserv AMC said, reflects the increasing prominence of the small-cap segment and the broader range of investment opportunities it now presents. The Nifty Small Cap 250 Quality 50 total returns index (TRI) has outperformed the Nifty Small Cap 250 TRI in 14 of the last 19 financial years, Bajaj Finserv AMC findings reveals. Overall, the quality index delivered higher returns than most other indices in nine financial years from FY10. The road ahead Market experts believe that small-cap segment holds promise even at the current juncture, provided investors do their homework diligently, invest in quality stocks and stay put for the long term. 'I continue to believe India is a small-cap market. While the headline indexes - the BSE Sensex and the Nifty 50 - may not deliver much return for the next couple of years, at smaller levels there are amazing companies in India,' said Shankar Sharma, founder, GQuant Investech. As of April 2025, most small-caps continue to trade below their 52-week highs, making the segment appealing from a valuation standpoint, experts suggest. While the small-cap index gained only 4 per cent since fiscal year 2023-24 (FY24), profit after tax (PAT) of companies in this segment grew by 38 per cent, highlighting the segment's unrealised value, the Bajaj Finserv AMC note said. "Despite the price correction, small-cap profits rose to ₹29,941 crore in FY25 from ₹21,669 crore in FY246. Moreover, 74 per cent of the top 250 small-cap companies reported a double digit returns on capital employed (ROCE), indicating strong underlying fundamentals," the note said. At the bourses, meanwhile, the Nifty Smallcap 250 index has seen an impressive run in the last two years till date with a gain of 64.4 per cent. The Nifty 50 index, on the other hand, moved up 32 per cent during this period, ACE Equity data shows. Transformers & Rectifiers (India) has been the top performer among small-cap stocks, rallying 1,132 per cent in the last two years till date. Wockhardt, Garden Reach Shipbuilders, IFCI, Multi Commodity Exchange of India, JSW Holdings, Godfrey Phillips India and PG Electroplast are some of the other stocks that zoomed between 365 per cent and 703 per cent during this period, ACE Equity data shows. "Most macroeconomic parameters remain conducive for the markets. Only major concern for the Indian equity market is ongoing war between Israel and Iran. Any possible rise in oil prices beyond $90 a barrel would impact the domestic equities quite significantly. Otherwise, the Indian market outlook – especially for the small and mid-cap segment - remains very robust," said G Chokkalingam, founder and head of research at Equinomics Research.
Mint
13-06-2025
- Business
- Mint
SMIDs vs bluechip: Make safer bets as experts see a deeper correction
MUMBAI : When US President Donald Trump spooked the markets with his tariff threat earlier this year, small- and mid-caps landed in bear territory, with the Nifty Smallcap 250 and the Nifty Midcap 100 correcting 25% and 21%, respectively, from their September peak by February end. Now, markets have staged a comeback, so has the SMIDs vs bluechip dilemma. Chasing high returns often requires investing in small- and mid-cap stocks for their explosive growth potential—a high-risk, high-reward strategy. Also Read: Gold is back under pressure after a stunning surge. What's driving the dip? However, according to market experts, it could be in retail investors' best interest to curb their enthusiasm because if earnings continue to underwhelm, SMIDs could see a deeper correction. Low earnings, high valuations The March quarter earnings have largely disappointed, with most companies in the BSE 400 failing to deliver meaningful growth, said Saurabh Mukherjea, founder and chief investment officer (CIO) at Marcellus Investment Managers, adding that valuations are once again creeping into expensive territory. To be sure, the Nifty Smallcap 250 is trading at a price-to-earnings (P/E) ratio of 33.35, significantly lower than its about a decade-long average of 48.20, while the Nifty Midcap 100 is trading at a P/E of 33.38, well below its 10-year average of 45.65, according to Bloomberg. He advised investors to trim exposure to small- and mid-caps and focus on high-quality large-cap stocks, warning of a potential deeper correction, possibly 30-40%. The Nifty 50 is currently trading at a P/E of 21.88, slightly above its 10-year average of 20.89. Besides, the Nifty 50 has risen over 6% in 2025 against the Nifty Midcap 100's 4.34% gain and the Nifty Smallcap 250's 1.17% fall. Harsha Upadhyaya, president and chief investment officer (CIO) at Kotak Mahindra Asset Management Co. Ltd, agreed, saying the 2024-25 earnings story has not exactly played out as expected. 'We kicked off the year with hopes of 15-16% earnings growth for large-caps and around 20% for small- and mid-caps. But, actual numbers have fallen short." Also Read: GE Vernova's impressive turnaround has stretched the stock's valuation According to Kotak Mutual Fund estimates for 2024-25, the Nifty 50 earnings grew 6%, the Nifty Midcap 150 12%, and the Nifty Smallcap 250 16%. Looking at the March quarter earnings, small-caps have had a rougher ride. 'If we split 4QFY25 performance in terms of market capitalisation, we see 31% of small-cap companies missed expectations, while the misses were lower in mid-caps and large-caps at 28% and 17%, respectively," said a 3 June report by JM Financial Institutional Securities. Hopes of recovery That said, the market is still holding on to hopes of a recovery across segments over the next couple of quarters. If that plays out, valuations might remain elevated. 'But if earnings continue to disappoint, small-caps could face a sharper derating." The only thing that can support higher valuations of small-caps—and mid-caps in that order—is superior growth over large-caps, which was the case from 2020-21 to 2023-24, Upadhyaya said. During the period, the Nifty 50 earnings saw a compound annual growth rate of 25%, less than the Nifty Midcap 150's 41% and the Nifty Smallcap 250's 32%. 'In 2024-25, we haven't seen that kind of outperformance. If it returns, these pricey valuations may stick around. But if earnings momentum slips, the broader market could see a correction," he added. Also Read: As India switches gears to renewable energy, these five switchgear stocks may benefit Meanwhile, small-cap funds remain an investor favourite despite the concerns of a bubble. In 2025, they have consistently cornered the largest share of declining monthly inflows in equity mutual funds. Sailesh Raj Bhan, CIO of equity investments at Nippon India Mutual Fund, noted that a systematic investment plan with a medium-term horizon is a reasonable strategy for mid- and small-cap stocks. Though large-caps stand out as sensibly priced, he added.
Time of India
07-06-2025
- Business
- Time of India
Risk-on rally: Defence and microcaps drive May surge in Indian markets; RBI rate cut extends momentum into June
Indian equities surged in May as defence stocks and microcaps led a broad-based rally, with investor appetite turning decisively risk-on. The rally picked up further pace in June following a surprise rate cut by the Reserve Bank of India (RBI), lifting rate-sensitive sectors and extending bullish momentum. Tired of too many ads? go ad free now According to a report by Motilal Oswal, the benchmark Nifty 50 rose 1.71% in May, while the broader Nifty 500 advanced 3.50%. Gains were strongest in the microcap segment, where the Nifty Microcap 250 jumped 12.10%, outpacing other indices, as reported ET. The Nifty Smallcap 250 rose 9.59% and the Nifty Midcap 150 gained 6.30%. Large-cap performance was more moderate, with the Nifty Next 50 up 3.49%. Sectorally, defence stocks emerged as the biggest winners, climbing 21.84% in May amid robust order visibility, government-backed indigenisation, and continued investor enthusiasm. Over the past 12 months, the defence sector has gained 30.78%, the highest among all sectors. 'All major sectors shown positive trend except for FMCG and Utilities which saw a downtrend during this period of -0.09% and -0.04% respectively,' the brokerage noted. Factor-based strategies also outperformed. The Momentum index gained 5.40%, the Quality index rose 4.82%, and the Enhanced Value index climbed 4.20%. The Low Volatility index rose 1.39%, reflecting investor preference for trend-driven and fundamentally sound portfolios. Investor optimism strengthened further in June after the RBI delivered a sharper-than-expected 50-basis-point cut in the repo rate and eased the cash reserve ratio (CRR) on June 6. The move, seen as supportive for liquidity and credit growth, triggered a rally in rate-sensitive stocks, with the realty index gaining nearly 5% on the day. The Nifty 50 and Sensex ended the week with gains of 1% and 0.90%, respectively, snapping a two-week losing streak. Tired of too many ads? go ad free now Global cues also remained favourable. In May, the Nasdaq 100 surged 9.04%, the S&P 500 climbed 6.15%, and the Dow rose 3.94%. In Asia, Taiwan and South Korea led emerging market gains. Meanwhile, gold prices dipped 0.74% amid rising risk appetite. With the Nifty 50 marking its third consecutive monthly gain and supportive policy signals continuing, investors are now eyeing upcoming macro data and earnings results to gauge the sustainability of the rally. Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
