Overnight Digest: Top 5 mid and small-cap stocks to watch out for February 6

On Monday, key market indices ended the day on a downbeat note, with the Sensex closing 0.49% lower at 71,731.42, and the Nifty dropping 0.38% to close at 21,771.70. PSU stocks showed positive movement but retreated from their peak levels.

In terms of sectoral performance, Nifty Pharma, Nifty Auto, Nifty Energy, and Nifty Realty recorded gains, while Nifty FMCG, Nifty Financial Services, Nifty IT, and Nifty PSU Bank faced losses.

Top gainers in the Nifty 50 included Tata Motors, Coal India, and Sun Pharma, while UPL, Bajaj Finance, and Bharti Airtel were among the top losers.

Looking at the broader market, Nifty Midcap saw a slight dip of 0.14%, whereas Nifty Smallcap posted a modest increase of 0.26%.

Here is the list of the Top 5 Mid and Small-cap stocks to watch

• Azad Engineering Ltd (Rs 932.2)
  Azad Engineering Ltd is a manufacturer of aerospace components and turbines and supplies its products to original equipment manufacturers (OEMs) in the aerospace, defence, energy, and oil and gas industries. The company is set to release its Q3FY2024 results on February 6. Thus, add this stock to the watchlist.
• Mahindra Lifespace Developers Ltd (Rs 603.3)
  Mahindra Lifespace Developers Ltd is engaged in the business of development of real estate, residential facilities, and commercial complexes and through its subsidiary companies is involved in various infrastructure projects including the development of SEZs and Industrial Clusters. The stock experienced a significant surge in trading volume today, surpassing its weekly average by almost 15 times. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.
• Unichem Laboratories Ltd (Rs 561.35)
  Unichem Laboratories Ltd is involved in pharmaceuticals in Generics, APIs and Contract Manufacturing (CMO) areas. Today, the shares of the company were locked in an upper circuit of 20% showcasing strong bullish momentum after disclosing the Q3 results. Thus, keep this stock on your watchlist.
• Shipping Corporation of India Ltd (Rs 277.7)
  Shipping Corp of India hits record high on demerged unit’s listing report. The stock reached a new 52-week high price of Rs 290.75. The company is engaged and involved in the business of transporting goods and passengers.SCI is the only Indian shipping Company operating in break-bulk services, international container services, liquid/dry bulk services, offshore services, and passenger services.
• Lemon Tree Hotels Ltd (Rs 139.85)
  Lemon Tree Hotels Ltd is set to release its Q3FY2024 results on February 6. Thus, it is advisable to add this stock to the watchlist. The company is the largest mid-priced and the third largest overall hotel chain in India. It operates in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.