Smallcap and midcap indices log new highs: What fuelled the rally?
From the small-cap index, stocks, including the likes of Latent View Analytics, gained up to 10 per cent.
Despite benchmark indices staying in negative territory, broader markets catapulted to new 52-week highs on Monday, November 20.
While the Nifty settled in the red with a cut of 0.19 per cent at 19,694, the Nifty Smallcap 100 and the Nifty Midcap 100 notched fresh 52-week highs.
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“Retail investor exuberance is pushing up the broader market. Investors should not be blinded by the recency bias and chase small caps running away without fundamental support," said Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
From the small-cap index, stocks, including the likes of Latent View Analytics, gained up to 10 per cent. Other stocks that were up over 5 per cent include JBM Auto, Amber Enterprises, and Cyient.
Alongside, the Nifty Midcap 100, which also hit a fresh 52-week high, saw stocks like Nykaa, Policy Bazaar, KPIT Technologies, and Mankind Pharma gain up to 4.5 per cent in the session.
"The ongoing rally in the mother market triggered by declining bond yields makes the market construct slightly favourable for the continuation of the rally in India, too. Like in cricket, there will be occasional setbacks, but it is the long-term trend that matters in the market.
This is a buy-on-dips market. "Investors should not be blinded by the recency bias and chase small-cap names that are running away without fundamental support. Despite recent underperformance, safety is now in large caps,” Vijaykumar added.