Indian Midcap Index Reaches New All-Time High Amid Broad Market Gains

Market Indices Maintain Upward Momentum for Second Consecutive Week

The broader indices in the Indian stock market continued their upward momentum for the second consecutive week, outperforming the benchmark indices. This surge was driven by strong buying in auto, healthcare, defence, and realty stocks.

During the week, the BSE Sensex advanced 414.69 points, or 0.53%, to close at 77,328.19, while the Nifty 50 gained 178.6 points, or 0.74%, to settle at 24,176.15. The broader markets outperformed the benchmark indices, with the Nifty Midcap 100 and Nifty Smallcap indices rising 3.5% and 4%, respectively.

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The Nifty Midcap 100 index touched a fresh record high of 62,113.85 during the week, while the Nifty Smallcap index moved closer to the 18,800 mark, trading just 2.2% below its all-time high of 19,224.95.

The rally in the midcap index was led by strong gains in stocks such as Yes Bank, Bharat Heavy Electricals (BHEL), Coforge, Polycab India, Laurus Labs, Dabur India, SRF, and Motilal Oswal Financial Services.

Domestic Institutional Investors (DIIs) continued their buying momentum, purchasing equities worth ₹21,392.85 crore, during the week. However, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹11,072.35 crore.

The total market capitalisation of BSE-listed companies rose more than ₹10 lakh crore during the week.

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Technical analysts Rajesh Bhosale and Rupak De provided insights into the market's future trajectory. Bhosale noted that the Nifty has now gained for the second consecutive week, but technically not much has changed, as prices over the past two weeks have continued to gyrate within a narrow range. He added that the 24,500–24,600 zone remains a stiff hurdle, restricting a momentum breakout.

De stated that the index has slipped back below the 50 EMA after briefly staying above it, indicating renewed weakness in sentiment. He also noted that the mood has further deteriorated as the index also moved below the 50 EMA on the intraday timeframe.

Sectoral indices ended the week in the green, led by the Nifty Capital Markets index, which surged 5.7%. The Nifty Auto index gained 5%, while the Nifty Defence index advanced 4.6%. Meanwhile, the Nifty Realty, Pharma, and Healthcare indices each climbed around 3.5%. On the downside, the Nifty PSU Bank index declined 1.3%, while the Nifty Oil & Gas index slipped 0.8% during the week.

Momentum indicators and oscillators are showing signs of improvement, with the RSI hovering around 46. The broader structure continues to remain sideways to positive, and a gradual recovery towards 24,300–24,500 levels is likely in the near term, while the crucial support of the 50-DMA is placed around 24,000 levels.