NSE mid-cap index recovers 600 pts from lows; SAIL, Jindal Steel lead the surge, Manappuram Finance biggest loser – Check what analyst says

After declining by over 2 per cent on the intraday basis on Wednesday, the broader market’s — Nifty Mid-Cap Index has recovered around 600 points from its day’s low of 26,807 levels during intraday trade today. The index was trading flat but negative 0.03 per cent or 9.3 points to 27,430 levels around minutes ahead of the market close on Wednesday. 

Out of 100 scrips, 36 have been advancing and 63 remain weak, while one is unchanged intraday. As metal stocks have been surging most since the beginning of the session today, Steel Authority of India (SAIL), Jindal Steel have jumped over 5 per cent ahead one hour before the market close.

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Meanwhile, Max Financial Services shares also surged over 4 per cent a day after its quarterly results on Tuesday. Similarly, the shares of Bharat Forge, Page Industries, Bank of Baroda, Ashok Leyland, Hind Zinc, Natco Pharma and RBL Bank have been gaining between 2-3 per cent in today’s trade.

On the contrary, Manappuram Finance leads the decline in the Index, as the stock slumped in double-digit by around 12 per cent intraday, followed by Trent down over 5 per cent and Prestige declining by above 4 per cent during Wednesday’s session.

The other weak stocks in the list, the reason for Index’s decline are: Whirlpool, Godrej Agrovet, Sanofi, Navin Fluorine, India Mart have been plunging between 3-4 per cent. While Godrej Industries, IRCTC, ATGL, Lal Path Lab, JSW Energy, Deepak Nitrate, Coforge, Mphasis, VGuard, Escorts, Ajanta Pharma, AB Captial, Dixon, GSPL declined by around 2-3 per cent intraday today.

Geojit Financial Services Chief Investment Strategist VK Vijayakumar says, the outperformance of large-caps, which started a few days back, gathered momentum yesterday with Nifty Mid-cap and Small-cap indices declining by 1.09 and 2.05 per cent respectively.

He added, “This divergent performance is desirable and healthy since it is removing the froth in the broader market and rewarding quality. The underperformance of the broader market may continue.”