Small-cap stocks hit record high as Nifty treads water

The Nifty Midcap 100 advanced 0.18% and the Nifty Smallcap 100 gained 0.76%, with the smallcap index registering a record high of 19,823.65 during the day but closed a tad lower at 19,783.70.

Benchmark equity indices ended Wednesday’s session nearly flat, with the real action unfolding beneath the surface. Smallcap stocks broke to a fresh all-time high even as the Nifty 50 struggled to hold ground, capping a volatile session dominated by the Reserve Bank of India’s widely anticipated policy decision and renewed geopolitical jitters over the Strait of Hormuz.The Nifty 50 closed at 24,624.65, up a marginal 9.75 points or 0.04 per cent, while the Sensex added 152 points or 0.19 per cent to settle at 78,581. The index had opened with a gap-up of around 53 points, briefly touching an intraday high of 24,677.60 before profit-booking dragged it to a session low of 24,497.95. A recovery in the final hour, including a 55-point jump during the closing auction session, helped Nifty claw back most of its losses.However, the Nifty Midcap 100 advanced 0.18 per cent and the Nifty Smallcap 100 gained 0.76 per cent, with the smallcap index registering a record high of 19,823.65 during the day but closed a tad lower at 19,783.70. The new high, for Nifty Smallcap 100, comes after breaking out of a six-week consolidation range. Market breadth was positive, with the BSE advance-decline ratio at 1.20.RBI-triggered rallyInvestor sentiment remained largely positive after the RBI unanimously kept the repo rate unchanged at 5.25 per cent while retaining its neutral policy stance, said Ajit Mishra – SVP, Research, Religare Broking Ltd. The central bank also revised its FY27 growth outlook higher, signalling confidence in the domestic economy despite concerns over elevated crude oil prices and global uncertainties, he said,“The RBI is watching crude and monsoon before moving. With crude now below $80, that condition is increasingly being met,” said Sarvam Goel, Founder, Pocketful, adding that metal and auto stocks rallied because both are direct beneficiaries of cheaper energy.Bank Nifty underperformed, closing at 57,739.95, down 167.25 points or 0.29 per cent, weighed by broad-based selling in private sector lenders, even as PSU banking stocks showed relative resilience.Mid & Smallcaps offer valueIn a recent report, Motilal Oswal Private Wealth highlighted that mid and small-cap carry higher exposure to high-growth sectors such as capital goods, manufacturing, renewables, and healthcare compared to the Nifty 50, and that valuations have improved meaningfully over the past 18 months.Sectorally, Metal, Auto, and Realty were the top gainers, while Media, FMCG, and Private Banks lagged. Shriram Finance and Grasim were among the top Nifty 50 gainers, rising over 2.5 per cent each, while TCS and Apollo Hospitals led the declines.The Indian rupee recovered from Tuesday’s weakness to close 26 paise higher at 85.12 against the US dollar, though gains were capped by a firming greenback, a rebound in crude oil prices, and the unchanged rate decision. Spot USD/INR finds immediate support around 84.75 and resistance near 85.60. Gold held firm, with MCX Gold gaining around ₹1,800 to trade near ₹1,46,150 and COMEX Gold advancing close to $70 to around $4,152 per ounce, supported by optimism around US-Iran talks, though uncertainty over a final deal kept geopolitical risk premium intact in bullion. Brent crude settled near $80.5 per barrel.Thursday brings a heavy earnings slate, with results due from Trent, LIC, Hero MotoCorp, Lupin, Britannia Industries, Samvardhana Motherson International, and Premier Energies, among others. Trent will be closely watched after a sharp fall following its previous quarterly update.Markets will also monitor US ADP Employment Change data ahead of Friday’s Non-Farm Payrolls report, which could drive the next significant move in gold and influence the Federal Reserve’s rate trajectory.Published on August 5, 2026