(Bloomberg) -- India stocks surged to a record high, buoyed by gains in smaller firms as a recent rally broadened to the wider market.
The S&P BSE Sensex closed up 0.5% to 41,020.61 in Mumbai and the NSE Nifty 50 Index also advanced 0.5%.
The MSCI India Mid-Cap Index is playing catch up after losing 18% in the past two years, lagging the benchmark Sensex’s gain of about 21%. Smaller firms may be poised to rise further as analysts at Citigroup Inc. say that with “better risk-reward,” they would look to selectively add some mid-cap stocks.
Strategist View
“We have seen a broadening of the trend of the market going up, there is some participation from mid-caps as well, showing the rally has more strength compared to earlier,” said Abhimanyu Sofat, head of research at IIFL Securities Ltd., “There is a lot of money still on the sidelines waiting to invest.”
The Numbers
- Fourteen of 19 sector sub-indexes compiled by BSE Ltd. gained, led by a gauge of automobile companies
- Twenty six of 31 shares on the Sensex rose
- HDFC Ltd. contributed most to the Sensex’s advance with a 1.4% rise; Yes Bank Ltd. was the biggest gainer with a 7.7% jump; ICICI Bank Ltd. weighed most on the index, slipping 1.1%; Larsen & Toubro Ltd. was the biggest loser with a 2% drop
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