Nifty Midcap 100 Logs Best Winning Streak Since Inception

The Nifty Midcap 100 logged its best gaining streak since inception on Tuesday, rising as much as 0.61% to 44,187.95.

As headline indices soared to fresh highs, the Nifty Midcap 100 has been advancing for 24 sessions in a row since Nov. 1. The index has gained 13.50% over the period.

Its previous best, in terms of consecutive gaining sessions, was recorded on Sept. 13, 2007, when the index surged for 15 sessions in a row, prior to the 2008 global financial crisis.

While the index has advanced 40.1% so far this year, it hasn't yet beaten its previous best gains of the calendar year 2003.

In comparison, the Nifty 50 and Nifty SmallCap 100 have gained 14.60% and 48.54%, respectively.

The midcap index saw its worst year during the 2008 global financial crisis, when it tumbled nearly 60%.

The overall bullish sentiment, coupled with higher earnings growth post-Covid, has led to the recent run-up in the index, according to Vinod Karki, equity strategist at ICICI Securities Ltd. However, he cautioned that according to their framework, the mid-cap space is getting overvalued as compared with large caps.

"Mid, small and micro caps have no margin of safety. Only high growth in earnings can sustain their valuations," ICICI Securities said in a Dec. 5 note.

The current price-to-earnings ratio for the index stands at 31.8, presenting a contrast to its three-year average multiple of 36.2.

Top Gainers And Laggards Of This Upmove

Among the Nifty Midcap 100 pack, only two stocks have delivered returns over 200%: REC Ltd. and Power Finance Corp.

Eight stocks have gained over 100% this year. These include Mazagon Dock Shipbuilders Ltd., Rail Vikas Nigam Ltd. and Aurobindo Pharma Ltd.

Aditya Birla Fashion and Retail Ltd., Page Industries Ltd. and Crompton Greaves Consumer Electricals Ltd. were the top laggards of the index so far this year, down in the range of 11–16%.