The NIFTY Midcap 100 index surged 1.46% to hit a record high of 63,076.50 on Friday, July 10, while the NIFTY Smallcap 100 index advanced 1.7% to reach a fresh 52-week high of 19,444.35, according to latest market data. This surge came on the back of optimism about earnings recovery in Q1 after Tata Consultancy Services surprised market participants by posting better than anticipated quarterly earnings. 83 shares in the NIFTY Midcap 100 index ended higher while 84 shares closed higher in the NIFTY Smallcap 100 index, demonstrating strong buying interest across broader markets.
TCS reported a net profit of ₹13,349 crore in the April-June period, marking an annual increase of 5% from ₹12,760 crore in the same period last year, driven by strong revenue from artificial intelligence services. The company earned $2.6 billion in revenue from providing AI services, marking a sequential increase of 14%. The strong pipeline of AI deals reported by TCS gave a significant boost to fortunes of other companies in the IT sector, with Zensar Technologies closing 13.59% higher at ₹508 mirroring gains in other IT stocks. Other IT gainers included Paytm, Godrej Properties, OFSS, Bank of India, Persistent Systems, SBI Card, IREDA, Motilal Oswal and JSW Energy which rose between 4% and 8%.
Indian Bank emerged as the top gainer in the NIFTY Midcap 100 index, surging 10% to close at ₹873 after it surprised the street by posting strong earnings in the April-June period. The state-run lender reported a net profit of ₹3,273 crore in the first quarter, marking an increase of 10% from ₹2,973 crore in the same period last year. The jump in profit came on account of lower provisions for bad loans and improvement in asset quality, with provisions for bad loans dropping to ₹376 crore compared with ₹748 crore in the previous quarter and ₹387 crore in the year-ago period. Kalyan Jewellers, Paytm, Godrej Properties, OFSS, Bank of India, Persistent Systems, SBI Card, IREDA, Motilal Oswal and JSW Energy also rose between 4% and 8% in the latest session.
According to The Economic Times, domestic equity mutual fund inflows climbed to $500 billion in March 2026, the highest in eight months, while SIP contributions stood at $321 billion per month. The National Pension Scheme contributed nearly $1.7 billion every month into equities during the first quarter of 2026. Tanvi Kanchan from Anand Rathi Share & Stock Brokers noted that FII selling hits largecaps almost exclusively, while midcaps are primarily owned and traded by domestic investors with remarkably resilient flows. As per Business Standard, the market sentiment remains supported by continued foreign portfolio investor (FPI) inflows and optimism ahead of the Q1 earnings season.
According to Vaqarjaved Khan from Angel One, as reported by The Economic Times, domestic-driven, earnings-backed midcaps structurally remain the most compelling allocation in Indian equities today. However, analysts caution that valuations have become richer in parts of the midcap universe, making stock selection and earnings quality increasingly important for sustained outperformance. From a technical perspective, analysts at ICICI Securities believe the ongoing retracement in Nifty is part of the prevailing uptrend, with strong support placed in the 23,600-23,400 zone expected to hold. Any ease of geopolitical tensions could fuel momentum toward 24,500, being the placement of the 200-day exponential moving average.
