India’s mid-cap stocks climb as Sensex swings

mumbai — India’s mid- and small- cap stocks advanced, helped by chemicals producers and metal makers, even as the benchmark index closed little changed in volatile trading.

Sudarshan Chemical Industries Ltd, a producer of colour pigments, surged the most in a year, while A2Z Infra Engineering soared by the 20 per cent limit. Tata Steel, the top producer of the alloy, rallied to a 10-month high. Hindalco Industries Ltd, the nation’s secondbiggest aluminum maker, extended last month’s 28 per cent rally.

The S&P BSE SmallCap Index climbed 0.9 per cent, while the benchmark S&P BSE Sensex rose less than 0.1 per cent after changing direction at least 20 times. Investor attention shifted back to company earnings after the market discounted the Reserve Bank of India’s interest-rate cut that was widely predicted.

“Investor interest shifted to small- and mid-caps after last month’s rally in the large companies,” Paras Bothra, a Mumbai-

Investor interest shifted to small- and midcaps after last month’s rally in the large companies

Paras Bothra, Vice president of equity research at

Ashika Stock Broking Ltd

based vice president of equity research at Ashika Stock Broking Ltd, said by phone. “The RBI event is over. Investors will keenly watch the earnings season to see if profit growth recovers or gets delayed further.”

The Sensex last month capped its best month since January 2012 as a government pledge to further pare the fiscal gap and speculation of an interest-rate reduction spurred capital inflows. Company profits remain on the opposite trajectory, falling in four of the last five quarters in the worst run since the financial crisis.

Tata Steel soared 5.2 per cent, the best performer on the Sensex. The shares have rallied 26 per cent this year. Hindalco climbed 4.8 per cent, the most since March 23. Tata Motors extended last month’s 29 per cent climb.