Overnight Digest: Top 5 mid and small-cap stocks to watch out for January 19

In a continuation of the prevailing bearish trend, the Indian equities market sustained losses for the third consecutive session on Thursday. The benchmark indices, Sensex and Nifty, concluded the trading day with moderate declines, witnessing a fall of 0.44% and 0.51%, respectively. The Sensex closed at 71,186.86 points, while the Nifty settled at 21,462.25 points.

The banking sector emerged as a significant drag on the indices, with Nifty Bank slipping by 351 points to 45,714. Notably, HDFC Bank contributed substantially to the losses, single-handedly influencing both Nifty and Nifty Bank’s downward trajectory.

Amidst the sea of red, Nifty Pharma, Nifty PSU Bank, Nifty Realty, and Nifty Auto emerged as the day’s top gainers, providing some respite. Conversely, Nifty Financial Services, Nifty Metal, Nifty Energy, and Nifty Bank found themselves among the top losers.

Individual stock movements were marked by Sun Pharma, Cipla, and Tech Mahindra registering notable gains, while LTIMindtree, HDFC Bank, and NTPC experienced significant declines within the Nifty 50.

The broader market indices mirrored the subdued sentiment, with Nifty Midcap recording a marginal decline of -0.11% and Nifty Smallcap witnessing a more significant dip of -0.18%.

Here are the Top 5 Mid and Small-cap Stocks to watch for the next trading session:

Tejas Networks Ltd (CMP Rs 848.6)

Tejas Networks Ltd is a global R&D-driven telecom equipment company headquartered in India. It designs, develops and manufactures high-performance optical and data networking products that are used by telecom service providers, utilities, government and defence networks. The company is set to release its Q3FY2024 results on January 19. Thus, it is advisable to add this stock to the watchlist.

Oracle Financial Services Software Ltd (CMP Rs 6,545.5)

Oracle Financial Services Software Ltd provides financial software, custom application development, consulting, IT infrastructure management, and outsourced business processing services to the financial services industry. The stock experienced a significant surge in trading volume today, surpassing its weekly average by over 10 times. The shares closed up by 28.6% for the day post disclosure of robust Q3FY2024 numbers. Considering these positive signals, it’s advisable to consider adding this stock to your watchlist.

Bedmutha Industries Ltd (CMP Rs 225.25)

Bedmutha Industries is a leading manufacturer & exporter of Wire Rope, Tyre Bead Wire and Galvanised Wires among other types of wires. It is also involved in the EPC Projects and Consultancy division. Today, the shares of the company were locked in an upper circuit of 5% signalling bullish momentum. Thus, it is advisable to add this stock to your watchlist.

Shalby Ltd (CMP Rs 304.2)

Shalby Limited, India’s leading multi-speciality hospital, has announced a strategic investment in PK Healthcare Pvt Ltd with the acquisition of an 87.26% equity stake for a consideration of Rs 102 crore approx. The investment is in line with Shalby’s strategy to accelerate its presence in the Delhi/NCR region with the vision to scale up international business and to consolidate its presence in the Northern part of India. Hence, keep this stock in your watchlist

Electrosteel Castings Ltd (CMP Rs 140.75)

Today, Electrosteel Castings Ltd shares achieved a new 52-week high price of Rs 142 signalling bullish momentum. Thus, it is advisable to add this stock to your watchlist. The company is engaged in the business of manufacturing Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast Iron (CI) Pipes and produces and supplies Pig Iron.

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.