Overnight Digest: Top 5 mid and small-cap stocks to watch out for May 17

Thursday witnessed a significant market recovery on the weekly expiry, with indices ending the session at day’s highs. The Sensex surged by 0.93%, closing at the level of 73,663.72, while the Nifty reclaimed the 22,400 mark, registering a gain of 0.92% and closing at 22,403.85

Among sectors, Nifty IT, Nifty Realty, and Nifty Media closed positively, while Nifty PSU Bank was the sole major sector that underperformed.

Leading the gainers were M&M, Tata Consumer Products, and Bharti Airtel, while Maruti, Tata Motors, and SBI were among the top losers in the Nifty 50.

In terms of market breadth, about 1226 stocks advanced compared to 875 stocks that declined, indicating a positive sentiment in the broader market. Additionally, the broader market saw significant gains, with Nifty Midcap closing higher by 0.88% and Nifty Smallcap soaring by 0.84%.

Here is the list of the top 5 mid and small-cap stocks to watch

1. PNC Infratech Ltd (Rs 436)
   

   PNC Infratech Ltd, one of the front-ending infrastructure development, construction, and management company, through a press release today informed that one of the company’s subsidiaries namely M.P. Highways Private Ltd received letter conveying approval for the extension of concession period for the following BOT-Toll Project from Madhya Pradesh Road Development Corporation Ltd. This extension provides PNC Infratech with more time to operate and generate revenue from the project, potentially leading to increased profitability and stability in the long term. Hence, given such development it warrants the inclusion tomorrow’s watchlist

2. Somany Ceramics Ltd (Rs 718)
   

   Somany Ceramics Ltd is engaged in manufacturing and trading of complete decor solutions, its products include ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitary-ware, bath fittings and allied products. Shares of the company experienced a significant surge in trading volume today, surpassing its weekly average by whopping 128 times. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.

3. Azad Engineering Ltd (Rs 1,374.25)
   

   Azad Engineering Ltd is a manufacturer of aerospace components and turbines and supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries Shares of the company were locked in an upper circuit of 5% for the day indicating increased buyer interest. The stock has delivered 97.24% return in the year till date. Hence given such momentum, keep this stock in your radar.

4. Kirloskar Electric Company Ltd (Rs 197.70)
   

   Today, the shares of Kirloskar Electric Company Ltd reached a new 52-week high price of Rs 197.70 signalling bullish momentum. It is an electrical engineering company that produces AC Motors, DC Motors, Transformers, Switchgear, and Electronics. It caters to core sectors like power generation, transmission and distribution, transportation, renewable energy, sugar, steel, cement, and allied industries. Add this stock to the watchlist.

5. Sadhana Nitro Chem Ltd (Rs 67.80)
   

   Sadhana Nitro Chem Ltd is engaged in manufacturing of chemical intermediates, heavy organic chemicals and performance chemicals and wireless network equipment and services. The company is set to release its Q4FY24 results tomorrow and given this positive development, it is prudent to closely monitor the stock.

 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.