Mid and small caps outperform Sensex as market remains volatile

The smaller stocks stole a march on their larger counterparts on Wednesday, when they outperformed the market by gaining over 2% each compared to 0.69% on the bellwether index.

In the midcap index, Tornt Power rose by 16%. Its last traded price was Rs.164.50. Triveni Engineering went up 10% to close at Rs.100.50.

Among the small cap companies, JSL went up 17.26%. Core project was up by 12.57%. They closed at Rs.89.00 and Rs133.90 respectively.

The Sensex rose by 98.72 points to close at 14422.73. The midcap index gained 2.38% and the small cap index went up 2.26%.

Banking was the only sector which went down in a rising market. It was down 0.12%. Power, Capital Goods and Healthcare formed the top three of the gaining indices. Power was up 2.82%, capital goods rose 2.52% while the healthcare sector gained 2.39%.

On the Nifty, there was a gain of 45.95 points, or 1.08%. The Nifty ended the day at 4292.95. The market breadth was positive with 4 advances to every decline.

Suzlon was the top gainer rising by 9.07%. It closed at Rs.116.65 compared to the previous close of Rs. 106.95.HDFC ended down by 2.32% to close the day at Rs.2310.45.

The midcap sector is being seen as increasingly attractive in the face of stretched valuations in the frontline sectors.

“We recommended investing in largecap stocks and were wary of mid-caps. We are now overweight mid-cap stocks, relative to largecap names,” said an HSBC equity strategy report authored by Vivek Ranjan Misra and Garry O Evans.