Mid, Small-Cap Indices Rebound to Pre-West Asia Conflict Levels, Highlight Top Performers
Market Indices Fully Recover from West Asia Conflict
The broader market indices have made a full recovery from the losses triggered by the West Asia conflict, returning to pre-war levels as of April 17. The recovery was led by the Nifty Smallcap 100 and the Nifty Midcap 100 indices, which have seen significant gains in recent weeks.
Investors had earlier reduced exposure to mid- and small-cap stocks amid heightened volatility and concerns over supply chain disruptions following the US and Israel's strikes on Iran on February 28. However, these segments have since rebounded to their pre-conflict levels, with much of the recovery taking place in April. The rebound has been particularly notable, with the Nifty Midcap 100 up 1.12% as of 3:10 pm, and the Nifty Smallcap 100 gaining nearly 1.5%.
The mid- and small-cap indices had declined 11-12% after the onset of the conflict, as these segments are typically more vulnerable during periods of uncertainty and external shocks due to relatively lower risk tolerance. Since February 28, midcap indices have climbed 13-15%, while smallcap indices have advanced 16-17% over the same period.
The Nifty Smallcap 100 index rally was driven by Angel One, Ircon International, and Triveni Turbine, which rose 10%, 9%, and 8.9%, respectively, as of 2:45 pm on April 17. Angel One shares rose over 10% to Rs 322.90 apiece after the company released its March quarter results, with its consolidated net profit for the quarter surging almost 84% on year to Rs 320 crore. The revenue from operations jumped over 38% to Rs 1,459 crore.
The Nifty Midcap 100 index rally was driven by Adani Total Gas, Colgate Palmolive, and Radico Khaitan, which climbed 6.3%, 6.2%, and 5.3%, respectively, as of 3 pm on April 17.
Market Performance Comparison
| Index | Decline (Feb 28 - Mar) | Recovery (Mar - Apr 17) |
|---|---|---|
| Nifty Midcap 100 | 11-12% | 13-15% |
| Nifty Smallcap 100 | 11-12% | 16-17% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Mid- and small-cap indices have rebounded to pre-conflict levels, making them a potential area of interest for investors.
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