Rally pushes BSE midcap index to its lifetime high

MUMBAI, JULY 12

The strong rally in the mid cap stocks continued unabated with the BSE mid cap index hitting a record high for the second consecutive day on Tuesday primarily driven by robust inflows from domestic investors.

The BSE mid cap index hit a lifetime high of 12,130.05 in the intra- day trade and ended the day at a new closing high of 12,116.53, up 59.26 points or 0.49 per cent.

While the shares of National Aluminium soared 13.33 per cent, the shares of Jindal Steel and Indiabulls Housing Finance surged 8.21 per cent and 3.91 per cent respectively.

The valuations are looking overstretched at the moment, experts pointed out and most of the companies in the mid cap stocks that have rallied higher are focussed on the domestic market.

“The mid cap stocks are finally moving ahead after five bad years. Most of these companies are focussed on the domestic markets and expectation about an improvement in the domestic economic growth is the main reason behind this upsurge. If growth improves as expected, the rally in mid cap stocks are expected to continue going forward,” said Gopal Agrawal, chief investment officer and senior fund manager at Mirae Asset Global Investments.

Mr Aggarwal also noted that India’s macro economic factors have improved with fiscal deficit coming under control and commodity inflation remaining benign.

BSE mid- cap index hit a lifetime high of 12,130.05 in the intraday trade and ended the day at a new closing high of 12,116.53, up 59.26 points.

MOST OF the companies in the mid cap stocks that have rallied higher are focussed on the domestic market.