CNX Midcap 200 soars to a new high

Foreign institutional investor interest, strong September quarter results drivers

The National Stock Exchange (NSE) CNX Midcap 200 index, which represents stocks having average six months market capitalisation between Rs 75 crore and Rs 750 crore, closed an all-time of 2234.55 on Monday.

Foreign institutional investor (FII) interest in fundamentally strong small and midcap stocks and the better financial results for the quarter ended September 2004 fuelled the rally in CNX Midcap 200 stocks.

FIIs, which were major buyers during the current calendar year, have increased their stake in more than 100 companies that comprise the index. They increased their holdings by 11 percentage points in the September 2004 quarter from June quarter levels.

In the last one month, the CNX Midcap 200 index has outperformed all others, including the S&P CNX Nifty and the Bombay Stock Exchange (BSE) Sensex.

The CNX Midcap 200 index appreciated by 13.72 per cent, from 1964.90 on October 25, 2004, to 2234.55 on November 22, 2004. The total market capitalisation of the 200 stocks that comprise the index increased by Rs 14,073 crore to Rs 1,15,014 crore. 
 

Top mid-cap gainers on the NSE
(In Rs)	Oct 25	Nov 22	% Chg
Rallis	103.25	219.95	113.03
Infomedia	86.00	149.50	73.84
McDowell & Co	63.40	105.80	66.88
Gujarat Alkalies	67.70	110.60	63.37
Polyplex Corp	163.10	266.25	63.24
Alembic	149.65	226.70	51.49
Tube Invest	156.90	229.65	46.37
Abhishek Ind	22.15	32.35	46.05
Trent	320.60	464.30	44.82
South East Asia	65.59	94.15	43.54

In comparison, the S&P CNX Nifty and the Sensex increased by around seven per cent each during the period. The S&P CNX Nifty closed at 1873.35 (1757.25) and the Sensex 5963.80 (5581.49).

Out of 200 stocks in the CNX Midcap 200 index, 180 reported an appreciation in a month. Of these 90 logged a growth of up to 14 per cent, 52 climbed up by between 14 and 25 per cent, 30 by 25-50 per cent and eight stocks surged by over 50 per cent.

Mahavir Spinning (Rs 271.80), Pantaloon Retail (Rs 549.15), Polyplex Corporation (Rs 266.25), Sintex Industries (Rs 293.85), Tube Investment (Rs 229.65), Varun Shipping (Rs 35.70) and Voltas (Rs 179.65) closed at all-time highs on Monday on the NSE.

Rallis' market price more than doubled in the last one month, from Rs 103.25 on October 25 to Rs 219.95 on Monday. The Infomedia stock price appreciated by 74 per cent, from Rs 86 to Rs 149.50 on Monday. The McDowell scrip closed at Rs 105.80, up 67 per cent from Rs 63.40 a month back.

Gujarat Alkalis' stock jumped 63 per cent to Rs 110.60 (Rs 67.70) within one month. The market price of Polyplex Corporation increased 63 per cent to Rs 266.25 (Rs 163.10), ITI by 63 per cent to Rs 26.05 (Rs 16), Alembic by 51 per cent to Rs 226.70 (Rs 149.65), Tube Investments by 46 per cent to Rs 229.65 (Rs 156.90) and Abhishek Industries by 46 per cent to Rs 32.35 (Rs 22.15).

For the quarter ended September 2004, these CNX Midcap 200 companies posted a 39 per cent growth in net profit against the industry average growth of 23 per cent during the quarter.