Benchmark stock market indices opened marginally higher on Thursday as IT stocks rose in early trade despite downtrend in the last few sessions, pushing Dalal Street up.
The S&P BSE Sensex added 154.21 points to 83,888.46, while the NSE Nifty50 gained 47.45 points to 25,866.80 as of 9:22 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that an important takeaway from Q3 results is the comeback of the mid and smallcaps.
“Improvement in earnings recovery and indications of continuation of this uptrend have brought the mid and smallcaps back to the radar of investors. At the institutional level, there is a trend of selective accumulation of mid and smallcaps. Even mutual funds which had flagged the valuation concerns of the mid and smallcaps have started approaching the segment with optimism,” he added.
An hour after the opening bell, Tata Consultancy Services Ltd led the Sensex gainers, rising 1.19%. It was followed by Infosys Ltd, which gained 1.09%. HCL Technologies Ltd moved up 0.87%, while Hindustan Unilever Ltd added 0.30%. Tech Mahindra Ltd also traded higher, rising 0.29%.
InterGlobe Aviation Ltd saw the sharpest fall, dropping 2.02%. Bharat Electronics Ltd declined 1.12%, Trent Ltd was down 1.05%, Mahindra and Mahindra Ltd slipped 0.92%, and NTPC Ltd fell 0.92%.
Vijaykumar further said that even now, largecaps have valuation comfort while mid and smallcaps are trading at much higher valuations.
“Nifty is trading at around 20 times FY27 estimated earnings while the NSE midcap and NSE smallcap indexes are trading at 28 and 24 times estimated FY27 earnings. This makes this market a stock picker’s market. Prospects for financials, autos, capital goods, pharmaceuticals and hotels look good,” he added.
