The Nifty Midcap 100 index touched a fresh record high of 62,113.85 during the week, while the Nifty Smallcap index moved closer to the 18,800 mark, trading just 2.2% below its all-time high of 19,224.95. According to reports from Moneycontrol, broader indices maintained their upward momentum for the second consecutive week and outperformed the benchmark indices, supported by strong buying in auto, healthcare, defence, and realty stocks. The positive momentum was further boosted by state election results where ruling party consolidated with higher number of state wins, reflecting stability and continuity that provided additional market confidence.
For the week, the BSE Sensex advanced 414.69 points, or 0.53%, to close at 77,328.19, while the Nifty 50 gained 178.6 points, or 0.74%, to settle at 24,176.15. As reported by Moneycontrol, the Nifty Midcap 100 and Nifty Smallcap indices rose 3.5% and 4% respectively, outperforming the benchmark indices significantly. The rally in the midcap index was led by strong gains in stocks such as Yes Bank, Bharat Heavy Electricals (BHEL), Coforge, Polycab India, Laurus Labs, Dabur India, SRF, and Motilal Oswal Financial Services. Despite geopolitical turbulence, equity benchmarks finished the volatile week on a positive note, settling at 24,200 with an 0.8% gain.
According to reports from Moneycontrol, Domestic Institutional Investors (DIIs) continued their buying momentum, purchasing equities worth ₹21,392.85 crore during the week, while Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹11,072.35 crore. The total market capitalisation of BSE-listed companies rose more than ₹10 lakh crore during the week. Most sectoral indices ended the week in the green, led by the Nifty Capital Markets index, which surged 5.7%, while the Nifty Auto index gained 5% and the Nifty Defence index advanced 4.6%. Sectorally, Auto, Defence along with Capital market were the prime leaders while IT, Consumer Discretionary relatively underperformed.
As reported by Momentum, momentum indicators and oscillators are showing signs of improvement, with the RSI hovering around 46. According to Rajesh Bhosale, Technical Analyst at Angel One, the index appears to have formed a higher base around the 23,800 mark, with dips towards this zone consistently getting bought into. However, the absence of momentum at higher levels indicates that overhead resistance continues to cap the upside, with the 24,500–24,600 zone remaining a stiff hurdle that restricts a momentum breakout. The current up move is supported by across all sector participation backed by strong market breadth along with better-than-expected earnings in some of the pockets that augurs well for durability of the ongoing up move.
The Nifty Midcap 100's 3.6% surge to fresh record highs while the Nifty remains 8% below its peak indicates a significant divergence in market performance. Technical analysts suggest that current higher base formation has set the stage for Nifty to challenge the milestone of 24,900 in the month of May, which would eventually open the door for extension of the ongoing up move towards 25,500 in the coming quarter. Meanwhile, 23,500 would continue to act as strong support. The breakout on ratio chart of Nifty 500 vs Nifty 100 bodes well for broader market outperformance against large caps, while the positive correlation between the Nifty and its global peers provides strong tailwind for a catch-up rally in the domestic market.
