Mid- and Small-Cap Stocks Deliver Double-Digit Returns as Broader Indices Outperform

Indian Stock Markets Continue Uninterrupted Run, Post Back-to-Back Weekly Gains

The Indian stock markets have maintained their upward trajectory for the second consecutive week, with the broader markets outperforming the benchmarks. The Nifty Midcap and Smallcap indices led the charge, gaining 3-4% driven by improved investor sentiment following easing geopolitical tensions, softer crude oil prices, and optimism surrounding the upcoming US-Iran talks.

Benchmark Indices Post Significant Gains

For the week, the BSE Sensex added 943.29 points (1.21%) to close at 78,493.54, while the Nifty 50 rose 302.95 points (1.25%) to finish at 24,353.55. The total market capitalisation of BSE-listed firms surged by over ₹14 lakh crore this week.

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Midcap and Smallcap Indices Witness Significant Growth

The Nifty Midcap 100 Index rose 3.5%, with Suzlon Energy, Radico Khaitan, Bharat Heavy Electricals, Blue Star, Rail Vikas Nigam, Oracle Financial Services Software, JSW Energy rising 10-16 percent. The Nifty Smallcap Index advanced 4.3% during the week, with Gujarat Mineral Development Corporation, PG Electroplast, Angel One, Netweb Technologies India, Reliance Power, Ircon International, Deepak Fertilisers And Petrochemicals Corporation, Inox Wind, Aegis Logistics, Triveni Turbine, Welspun Corp, Aptus Value Housing Finance India, Five-Star Business Finance rise 10-22 percent.

FII and DII Flows

During the week, selling from Foreign Institutional Investors (FIIs) eased as they sold equities of ₹251.47 crore, while Domestic Institutional Investors (DIIs) offloaded equities worth ₹6,285.91 crore.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Market Sentiment and Outlook

According to Vinod Nair, Head of Research at Geojit Investments, "Indian equities weathered a volatile week driven by West Asian tensions, crude oil fluctuations, and early Q4 earnings cues. Oil prices briefly surged on geopolitical risk, amplifying inflation worries, underscored by rising March retail & wholesale inflation from food and energy pressures. Easing fears around U.S.–Iran negotiations and ceasefire frameworks pulled crude lower below $ 100, reviving selective buying."

Policy and Economic Updates

The RBI asked state oil refiners to curb spot dollar purchases to manage currency volatility. The IMF raised India's FY27 GDP growth forecast to 6.5% even as it flagged global recession risks, highlighting India's macro resilience.

Technical Analysis and Market Outlook

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes that the market action indicates a strong uptrend with minimal downward correction in between. Ajit Mishra – SVP, Research, Religare Broking, expects markets to react first to the results of banking heavyweights such as HDFC Bank and ICICI Bank in early trade on Monday. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, suggests that the immediate resistance for Nifty is placed in the 24430-24450 zone.

Sectors and Themes

Among sectors, all indices ended in the green except Auto. The Nifty Capital Markets index led the gains, rising 7%, followed by the Nifty Defence index, which added 6.2%. The Nifty Energy index gained 4.5%, while the Nifty Metal index rose over 4%. Meanwhile, the Nifty Media and Realty indices advanced 3.5% each.

Comparison of Weekly Performance