Midcap Index Hits Fresh Record High as Investors Favour Broader Market Stocks

The Nifty Midcap 100 index scaled a fresh record high on Friday, 8 May, extending its winning streak to a fifth consecutive session. According to experts, investors continued to favour broader market stocks amid strong earnings momentum and sector-specific tailwinds.

The index has rallied nearly 9% over the past one month, significantly outperforming the benchmark Nifty 50, which has gained just 0.69% during the same period. The Nifty Midcap 100 touched a new all-time high of 62,113, surpassing its previous peak of 61,549 recorded on 7 January 2026.

Valuations across broader markets, however, remain elevated. The Nifty 50 currently trades at a one-year forward price-to-earnings (P/E) multiple of 19.1x, around 9% below its long-period average (LPA) of 21x. In comparison, the Nifty Midcap 100 and Nifty Smallcap 100 indices trade at 27.6x and 22.6x forward earnings, respectively, representing premiums of 16% and 30% over their historical averages.

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Among the top gainers in the index, Coforge surged more than 6%, emerging as the biggest gainer. Dabur India rose nearly 4%, while Godfrey Phillips India advanced over 3.5%. Other notable gainers included Mankind Pharma, Radico Khaitan, and Persistent Systems, which gained between 2% and 3% during the session.

Sunny Agrawal, Head of Fundamental Research at SBI Securities, attributed the strong outperformance of mid-cap stocks to superior earnings growth among mid- and small-cap firms. He noted that earnings growth for large-cap companies is expected to remain broadly in line with nominal GDP growth at around 10–12%. In contrast, several mid-cap companies are reporting significantly stronger year-on-year earnings growth in the range of 15–20%.

According to Agrawal, the market is increasingly recognising this stronger growth trajectory, reflected in the continued outperformance of mid-cap stocks relative to benchmark indices dominated by large-cap companies.

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Technical Views

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the index continues to trade comfortably above its key short- and long-term moving averages, reflecting a strong bullish trend. He added that the ratio line on the Nifty Midcap 100/Nifty chart has also touched a new high, indicating sustained relative outperformance against the benchmark index.

Shah noted that the breakout above the 60,966–59,058 consolidation zone signals continuation of the ongoing uptrend. Momentum indicators also remain strong, with the RSI taking support near the 60 mark during consolidation, while widening directional indicator (DI) lines and a strong DI+ placement point to aggressive buying interest. He expects the 61,600–61,500 zone to act as a crucial support area going forward.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that while the Nifty 50 continues to face resistance around the 24,500 zone, which coincides with the 61.8% retracement level of the broader decline from all-time highs, the Nifty Midcap 100 remains firmly placed at record levels.

According to Bhosale, the breakout above the January swing high reflects strong optimism in the broader markets. He added that the prevailing uptrend is likely to continue, and any correction towards the 61,000 breakout zone could present a buying opportunity. Technically, he sees the index potentially moving towards the 65,000 mark in the near term.