India’s midcap boom amid market volatility: Top gainers and expert stock picks

Added: 2026-05-19

[00:00:00]Even as benchmark indices struggle through CY 2023 amid geopolitical tensions, elevated crude oil prices, and persistent foreign investor outflows, [music] India's mid-cap stocks have continued to outperform. The benchmark Nifty 50 [music] is down nearly 9% so far this year. But the Nifty mid-cap 100 has gained 1.27% and the Nifty small-cap 100 has done even better, rising 4.58%. [music] So, what is driving mid-caps higher while the broader market remains under pressure? And can this [music] rally sustain?

[00:00:34]First, let's understand why are mid-caps outperforming. Now, analysts point to two key factors: [music] valuations and earnings. By late 2024, many mid-cap stocks had become overheated and expensive. But then a series [music] of corrections, amplified by geopolitical concerns linked to Iran and West Asia, brought valuations back to more reasonable levels. Now, that [music] has made several mid-cap stocks look attractive again relative to their earnings growth.

[00:01:03]And at the [music] same time, earnings across many mid-cap segments have remained resilient, supported by domestic demand, [music] capital expenditure momentum, and improving balance sheets.

[00:01:15]So, investors now appear to be focusing less on hype and more on businesses with visible growth and stronger fundamentals.

[00:01:24]So, which stocks have [music] led the rally? Hitachi Energy India tops the list, up 82.3% [music] so far this year.

[00:01:32]BSE Limited follows with gains of 46.35%.

[00:01:36]GE Vernova T&D India has risen 45.67%.

[00:01:39][music] Group parent Billion Brains Garage Ventures is up nearly 35%.

[00:01:46]And BHEL [music] has gained more than 34% this year. Other strong performers include Multi Commodity Exchange, which is up [music] 33.49%, Nalco, which is up 29.35% Bharat Forge, [music] which is up 27.43% SAIL is up 26.57% and Oracle Financial [music] Services is up 26.12%.

[00:02:09]So, where should investors be looking now? Analysts remain constructive on the mid-cap space, [music] but they're also urging caution. Wealth Mills Securities recommends buying quality stocks on dips in [music] a staggered manner, rather than taking lump sum exposure in a volatile market.

[00:02:26]>> [music] >> Religare Broking's preferred mid-cap picks include REC and Power Finance Corporation. Now, both of which >> [music] >> are benefiting from the structural power and transmission capex cycle, while still trading at relatively reasonable valuations. In pharmaceuticals, it prefers Lupin because of improving US business performance and margin [music] expansion.

[00:02:49]It also remains positive on KEC International and NCC Limited, citing [music] strong infrastructure demand and an ongoing ordering cycle tailwind. And in the consumer space, Crompton Greaves Consumer Electricals is being watched for signs [music] of demand recovery and improving margins. So, in a nutshell, yes, mid-caps are outperforming, but analysts are equally clear on one point.

[00:03:13]This is increasingly becoming [music] a stock specific market.

[00:03:17]Which means not every mid-cap [music] will benefit. The companies continuing to outperform are largely those which are backed by strong fundamentals, earnings visibility, and a domestic growth story that remains intact despite broader market volatility. Follow Business Standard for more such stories.