The Nifty 50 and S&P BSE Sensex, key benchmarks in the Indian stock market, have witnessed a steady rise of 9% and 8%, respectively, in the current year. In contrast, the BSE Mid-Cap index and BSE Small-Cap index have demonstrated substantial growth, soaring by 32.27% and 37.70%, respectively.
Today’s trading session marked a significant milestone as the BSE Mid-Cap and BSE Small-Cap indices reached new record highs at 33,526 points and 39,855 points, respectively. Throughout this month, both indices have experienced a robust surge of nearly 8%.
The buoyancy in mid and small-cap stocks is attributed to the ongoing recovery in India’s capital expenditure. Notably, defense stocks have seen remarkable upswings, fueled by substantial order wins, increased budget allocations, and the government’s emphasis on domestic procurement over defense imports.
Railway-related stocks have also witnessed an upward trajectory, driven by strong order wins linked to the ongoing modernization of the railway sector. Additionally, renewable energy stocks have surged, aligning with India’s ambitious goal of achieving 500 GW of non-fossil-based electricity capacity by 2030.
Notable Stock Performances:
Individual stocks within the BSE Mid-Cap Index, including REC, Power Finance Corporation, IRFC, and UCO Bank, have delivered impressive returns ranging between 150% and 250% over the past year.
PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, rebounded strongly in the current year, witnessing an 83% gain after a challenging 2022.
Numerous other stocks, such as UCO Bank, Aurobindo Pharma, SJVN, Polycab India, Bharat Heavy Electricals, and many more, have yielded returns between 60% and 115% over the last year.
Remarkable Small-Cap Performances:
An impressive 175 BSE small-cap stocks have delivered returns exceeding 100% in the last year. Jai Balaji Industries leads this lineup with an astounding return of 1350%.
Operating in the steel sector, Jai Balaji Industries has consistently delivered exceptional monthly returns from July to October, ranging from 25% to an outstanding 106.51%.
Despite these remarkable performances, some analysts are cautioning that the small-cap space may be at risk of a correction following the steep ascent over the past few months.