Indian markets extended gains to the third day, with Sensex rising 193 points to 36,636 while Nifty settled at 11,053, up 0.55%. Energy, metal and pharma stocks led the gains today. The broader markets remained strong, with BSE midap and smallcap stocks indices rising about 0.5% and 0.1% respectively.
Among the Nifty50 stocks, Bajaj Finance, BPCL, Bharti Infratel, ICICI Bank, RIL, Titan, Hindalco, Wipro and Vedanta rose between 2% and 3%.
Some profit-taking was seen in Tata Motors, Indiabulls Housing Finance, Axis Bank and HUL.
“Despite mixed global cues, Indian bourses continued their momentum going throughout the day. The broader indices have been strong this week as the correction in small and mid-cap stocks is way overdone, hence, serious buying is emerging in these counters,” says Umesh Mehta, head of research at Samco Securities.
Elara Capital also remains positive on midcap stocks. “The relative valuation of midcaps vs largecaps are at a historically low level. We believe valuations are compelling at these levels for a revival in performance of midcaps, particularly the quality midcaps which have also taken a substantial beating,” the brokerage said in a note.