Small & midcaps rally! Coforge, Ola Electric, FirstCry & other stocks jump up to 7%

The Nifty Midcap 100 and Nifty Smallcap 100 indices gained over 1.4% each, while the largecap Nifty 50 index was up 0.5%, as seen at 11 am on Tuesday.

Coforge shares were the top gainers on the Nifty Midcap 100 index, jumping around 6% with IT peers Mphasis, OFSS and Persistent Systems following with a 5% rise in share price. The IT stocks are leading gains on Dalal Street as persistent rupee depreciation and cheaper valuations after the recent AI-led crash boosted investor sentiment.

“As per market consensus, Coforge is trading at a 1-year forward P/E of 23x (3-year average P/E of 34x), offering an attractive valuation. Coupled with a strong executable order book, diversified vertical growth, and enhanced AI-led capabilities, the company is well-positioned to deliver sustained double-digit growth and margin expansion in FY27,” said Geojit Investments while maintaining a ‘Buy’ call on the stock, with a target price of Rs 1,670 apiece.

Radico Khaitan, Policybazaar and Voltas shares followed, rising nearly 4% each. Vodafone Idea shares also gained around 4% to hit a fresh 52-week high, although several brokerages remain cautious after the 95% rally in one year.

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KPIT Tech, Adani Total Gas, BSE, Patanjali Foods, Hindustan Petroleum Corporation (HPCL), Jubilant Foodworks and Prestige Estates, meanwhile, gained more than 3% each, buoyed by varied tailwinds.

Ola Electric Mobility shares were the top gainers on the Nifty Smallcap 100 index, rallying nearly 7%. Shares of the EVscooter-maker have gained around 6% in one week, but declined over 9% in one month. The stock is down 29% over one year.

FirstCry-parent Brainbees Solutions, Angel One and Tata Tech jumped over 5%, while Gland Pharma, IDBI Bank and Firstsource Solutions gained nearly 5%. Deepak Fertilisers, Himadri Speciality Chemical (HSCL) and The Great Eastern Shipping Company also rose close to 4%.

What lies ahead?

Broadly, at the macro level, the concerns surrounding growth, inflation and currency depreciation persist, warned VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “Therefore, investors should focus on sectors which will be least impacted by these potential headwinds. Pharmaceuticals, power-related stocks and defence stocks will be the least affected by a potential slowdown,” he said.

Also read: Why 10 stocks suffered massive Rs 17,000 crore mutual fund selloff in April

The analyst highlighted that the Q4 results have been more or less good and better than expected in some cases. “This is an indication that the economy had started to recover in response to the fiscal and monetary stimulus measures of last year, before being impacted by the energy crisis. Therefore, if there is a quick resolution of the Hormuz crisis, the economy may recover fast, and the slowdown expected this year will not be as severe as feared,” he further said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)