Mid-cap stocks have demonstrated remarkable resilience, extending their winning streak to the third consecutive week with the Nifty Midcap 100 rising 0.5% to scale a fresh all-time high. According to Moneycontrol, this sustained rally is supported by gains in key names including One 97 Communications (Paytm), Vodafone Idea, MCX, Info Edge India, Hitachi Energy India and LG Electronics India. However, the broader market showed mixed performance as Nifty Smallcap 100 declined 0.65%, snapping its two-week gaining streak amid different sectoral dynamics. The Nifty 50 declined 204.65 points, or 0.83%, to 24,366, while BSE Sensex fell 489.92 points, or 0.62%, to 78,009.25 for the week.
Nifty Media led the gains with a 2.2% rise, followed by Capital Markets at 1.6%, Consumer Durables at 1.3%, Realty at 1% and Defence at 0.8%. On the downside, Nifty Metal fell 1.9%, followed by FMCG at 1.6%, Auto at 1.5%, Healthcare at 1.2% and Oil & Gas at 1%. As per Geojit Investments, markets remained range-bound through the week amid elevated crude and persistent global uncertainty, with softer-than-expected U.S. labour market data initially supporting expectations of a patient Fed. However, the subsequent rebound in crude shifted focus back to inflation risks and evolving geopolitical developments. Better-than-expected corporate earnings, stability in the rupee, moderation in the domestic 10-year bond yield and a gradual improvement in FII participation provided support to the domestic macro environment.
From a technical perspective, Sudeep Shah from SBI Securities notes that the immediate resistance for Nifty is placed in the 24500-24550 zone, with any sustainable move above this zone potentially extending the pullback towards 24700, followed by 24850 in the short term. The immediate support for Nifty is placed in the 24230-24200 zone, which coincides with the 100-day EMA. Rupak De from LKP Securities observes that the momentum indicator RSI has started to weaken further, with the bearish crossover slipping towards the oversold zone, suggesting potential for further fall towards 24,180. Despite the narrow rally pattern, analysts believe the market bias toward mid- and small-cap stocks has turned buoyant following Q1 results, with 33 constituents outperforming estimates in the Nifty 50's strong Q1FY27 earnings performance, creating opportunities for bottom-up stock selection approach.
A key positive factor supporting mid-cap prospects is the continued buying streak by foreign institutional investors (FIIs) for the third consecutive week, purchasing equities worth ₹1,228.24 crore during the week. Domestic institutional investors (DIIs) provided further support, investing ₹9,285.63 crore in equities over the week, as reported by Moneycontrol. The total market capitalisation of BSE-listed companies increased by more than ₹1 lakh crore during this period. This sustained institutional interest, combined with better-than-expected corporate earnings and stability in the rupee, provides a strong foundation for continued mid-cap growth prospects despite broader market challenges from elevated crude prices and global uncertainties.
