The shares of smallcap companies including IIFL Finance, Meesho, GRSE, and others sharply rallied up to 7% on Wednesday as the broader markets outperformed benchmark indices despite overall caution in markets.
The Nifty Smallcap 100 index gained around 153 points (0.85%) to hover around 18,092, as seen at 11.45 am. At the same time, benchmark Nifty 50 index gained 115 points (0.5%) to 23,495.
Top smallcap gainers today
IIFL Finance shares were the top gainers on the Nifty Smallcap 100 index, rallying around 7%. This comes after the company said it has adequate factual and legal grounds to substantiate its position and does not expect any material impact on its financials or operations after Mumbai’s IT authority sent a tax demand notice for nearly Rs 476 crore.
Hindustan Copper shares followed, jumping 6% and accompanying its metal peers which recorded sharp gains amid an overall muted market sentiment. Meesho shares meanwhile gained over 4%.
Manappuram Finance shares rose over 3% as gold prices jumped after the government hiked import duty on the previous metal to 15%. The company is one of the major gold loan financiers.
HSCL, GMDC, Devyani International and IFCI shares gained around 3%, while GRSE, Data Patterns, Navin Fluorine International, Deepak Fertilisers and Piramal Finance shares gained over 2%.
Piramal Pharma, CDSL, Ola Electric Mobility, PhysicsWallah, Urban Company, Dr Lala PathLabs, Sagility, RBL Bank, Sona Comstar and others followed, rising up to 2%.
What lies ahead?
Despite tariff worries and global uncertainty, mid and smallcap earnings have shown genuine resilience through the last quarter, highlighted Aniruddha Naha, Executive Director and Chief Investment Officer at PGIM India Asset Management. Speaking to ET Now, he said that PGIM India has maintained its tilt toward this space over the past six months and Naha sees no reason to change that stance. The strength in earnings across mid and smallcaps gives him confidence that the recent correction is creating opportunity rather than signalling deeper trouble.
Also Read | Rural India, agro chemicals, and value retail: Where Aniruddha Naha is putting money to work
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
