Overnight Digest: Top 3 mid and small-cap stocks to watch out for June 5

Indian stock markets witnessed a significant decline on Tuesday, mirroring the uncertainty surrounding the ongoing election results.

The key market indexes, the Sensex and Nifty, experienced a sharp drop. The Sensex closed 5.74% lower at 72,079.05, while the Nifty fell 5.93% to settle at 21,884.50

The India VIX, a key volatility gauge, surged by 23.65% to around 25.89. This reflects a significant increase in market nervousness surrounding the election outcome.

Interestingly, the Nifty FMCG (Fast Moving Consumer Goods) sector emerged as the lone bright spot, closing in positive territory. Conversely, sectors like Nifty PSU Bank, Nifty Energy, Nifty Metal, and Nifty Realty witnessed significant losses.

Among the Nifty 50 companies, Hindustan Unilever, Nestle India, and Britannia were the top gainers, defying the overall downward trend. On the other hand, Adani Ports, Adani Enterprises, and ONGC were the major losers.

The decline extended to the broader market as well. The Nifty Midcap and Nifty Smallcap indexes, representing mid-sized and smaller companies, witnessed even steeper falls, closing down 7.88% and 8.23% respectively.

 Here is the list of the top mid and small-cap stocks to watch

1. Heritage Foods Ltd (Rs 459)
   

   Heritage Foods Ltd’s shares hit a new high at Rs 479.80, indicating strong upward momentum. With a 36.06% return in the past month, the company is engaged in the business of procurement and processing of Milk & Milk products and also generation of power through solar & wind for the captive consumption of its dairy plants. Add this stock to the watchlist.

2. Gensol Engineering Ltd (Rs 885.20)
   

   Gensol Engineering Ltd has received the In-principal approval for warrants issue. The company is engaged in the business of Solar consulting & EPC. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.

3. Shilpa Medicare Ltd (Rs 499)
   

   Shilpa Medicare, founded in 1987, makes specialty chemicals and drug ingredients. They also develop medications and do research for clients. Their subsidiary, Shilpa Biologicals, just filed a key document with the US FDA for a new albumin treatment. This albumin is produced using a patented, eco-friendly process, making it potentially cost-competitive. It is advisable to keep this stock on your watchlist.

Even though the overall stock market was experiencing market turmoil, some mid-cap stocks like Max Healthcare, Sun TV, and IPCA Labs managed to close the day in the green. Additionally, a small-cap stock named Jyothy Labs also closed higher. Given this strong performance, these companies might be worth keeping on your watchlist for further research.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.