Stock Market News : On Thursday, the BSE SmallCap index reached a new milestone, hitting an all-time high of 55,773.12. This achievement came after the index surged by 1% during intraday trading, driven by a strong rally in sectors such as logistics, auto ancillary, chemicals, pharmaceuticals, textiles, and fertilisers. The index surpassed its previous record of 55,685.07, set on July 31, 2024.
By 12:28 PM, the BSE SmallCap index was the top performer among broader indices, gaining 0.63%. In comparison, the BSE MidCap index rose by 0.55%, while the BSE Sensex index posted a modest 0.27% increase. Throughout 2024, the SmallCap index has shown impressive growth, rallying 30%. This is just behind the MidCap index, which has surged by 31%, and well ahead of the Sensex, which has gained 12% so far.
Notably, shares of companies like Transport Corporation of India (TCI), Varroc Engineering, TVS Electronics, and Precision Camshafts soared between 10% and 20% today. Meanwhile, stocks such as Arman Financial Services, Morepen Laboratories, Gufic Biosciences, Punjab Chemicals and Crop Protection, Ambika Cotton Mills, Tanfac Industries, and Ruby Mills rallied by 7% to 9% during intraday trading.
Several small-cap stocks, including Transformers and Rectifiers (India), Omaxe, PC Jeweller, Lloyds Enterprises, and Coffee Day Enterprises, were locked in a 5% upper circuit, with strong buying interest. In total, 30 stocks from the SmallCap index reached their all-time highs on Thursday.
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Stock Market News : Boost from Domestic Institutional Investors (DIIs)
The surge in mid-cap and small-cap stocks has been largely fueled by strong inflows from domestic institutional investors (DIIs). Data from the exchanges shows that DIIs have made net investments of Rs 41,212 crore in equities so far in August 2024. DIIs have been consistent net buyers for 13 consecutive months, contributing a total of Rs 4.02 trillion in equity investments since August 2023.
FAQs
What caused the BSE SmallCap index to reach a new high?
The BSE SmallCap index hit a new high due to strong demand in sectors like logistics, auto ancillary, chemicals, pharmaceuticals, textiles, and fertilisers, leading to a 1% gain in intraday trading.
How has the BSE SmallCap index performed in 2024?
The BSE SmallCap index has rallied by 30% in 2024, making it one of the top performers among broader indices.
Which stocks saw significant gains today?
Stocks such as Transport Corporation of India (TCI), Varroc Engineering, TVS Electronics, and Precision Camshafts saw gains of 10% to 20%, while others like Arman Financial Services and Morepen Laboratories rallied by 7% to 9%.
What role did domestic institutional investors (DIIs) play in the rally?
DIIs played a crucial role in the rally, with net investments of Rs 41,212 crore in August 2024 and consistent buying for 13 straight months, totaling Rs 4.02 trillion since August 2023.
How did other indices perform in comparison to the BSE SmallCap index?
While the BSE SmallCap index gained 0.63%, the BSE MidCap index rose by 0.55%, and the BSE Sensex index saw a 0.27% increase.
What sectors contributed the most to the BSE SmallCap index’s rise?
The sectors that contributed the most include logistics, auto ancillary, chemicals, pharmaceuticals, textiles, and fertilisers.
What is an upper circuit, and how does it affect stocks like those in the SmallCap index?
An upper circuit is the maximum price limit that a stock can reach in a single trading day. Stocks like Transformers and Rectifiers (India), Omaxe, PC Jeweller, and others hit their 5% upper circuit, meaning they reached their maximum allowed price increase for the day, leading to a halt in further trading due to strong buying interest.
How does the BSE SmallCap index compare to the BSE MidCap and Sensex indices in terms of growth?
The BSE SmallCap index has grown by 30% in 2024, slightly trailing the BSE MidCap index’s 31% growth but outperforming the BSE Sensex index, which has gained 12% so far.
Why have domestic institutional investors (DIIs) been consistently investing in the stock market?
DIIs have been consistently investing due to positive market sentiment, attractive valuations in mid-cap and small-cap stocks, and strong economic fundamentals, leading to 13 consecutive months of net buying
What does it mean when 30 stocks from the SmallCap index hit their all-time highs?
It means that these 30 stocks have reached their highest trading price ever, indicating strong performance and significant investor interest in those specific companies.