Small and mid-cap indices reach all-time highs

Strong domestic factors are providing crucial support for Indian equities

Mumbai: Small and mid-cap stocks were standout performers on Tuesday, with both indices reaching all-time highs, said Vinod Nair, Head of Research at Geojit Financial Services.

Strong domestic factors are providing crucial support for Indian equities, allowing them to maintain their strength despite attempts by weak global peers to disrupt the mood. India’s service PMI remains robust at 60.2, indicating sustained demand even in the face of inflationary pressures, he said.

Conversely, the weak Chinese service PMI has cast a shadow on hopes of an economic rebound in China, impacting global market sentiments, he added.

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Domestic equities closed positively for the third consecutive day on Tuesday led by optimistic domestic cues, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

Services PMI data came in strong at 60.1 for the month of August, boosting sentiments. Despite weak global markets, Nifty opened positive and traded in a narrow range to finally close with gains of 46 points (+0.2 per cent) at 19,575 levels, while the S&P BSE Sensex advanced 150 points to close at 65,780.

Broader market outperformed with Mid-cap 100 and Small-cap 100 up 1.1 per cent and 0.8 per cent, respectively, he said.

Except for auto and financials, all sectors gave positive return with media rallying more than 3 per cent, while healthcare gained 1.6 per cent.

Going forward, market would continue trading in a broader range with positive bias as resilient domestic economy provides strength, amidst uncertain global cues, he added.

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