Overnight Digest: Top 5 mid and small-cap stocks to watch out for May 29

On Tuesday, the market experienced a turbulent session, closing lower amid heightened volatility. The Volatility Index (VIX) surged to a two-year high, reflecting the market’s uncertain outlook.

The Sensex moderately declined by 0.29% to close at 75,170.46, while the Nifty fell by 0.19%, ending at 22,888.15.

Despite the overall downtrend, Nifty Pharma, Nifty Media, and Nifty Financial Services managed to close positively. However, Nifty Realty, Nifty PSU Bank, and Nifty Energy were the major underperformers.

Among the Nifty 50 stocks, Divi’s Laboratories, SBI Life, and HDFC Life emerged as top gainers. In contrast, Adani Ports, Power Grid, and BPCL were the top losers.

Market breadth was notably negative, with 566 advancing stocks against 1,544 declining ones. The midcap segment’s underperformance, with the Nifty Midcap closing 0.89% lower, contributed to the broader market’s negative sentiment. Similarly, the Nifty Smallcap index plunged by 85%, further indicating widespread declines across market segments.

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

1. Sumitomo Chemical India Ltd (Rs 449.20)
   

   Sumitomo Chemicals India Ltd’s shares hit a new high at Rs 482, indicating strong upward momentum. With a 9.38% return in the past month, the subsidiary of Sumitomo Chemical Company Ltd (SCCL) specializes in crop protection products. SCCL, holding a 75% stake, operates manufacturing plants in Gujarat, Maharashtra, and Dadar & Nagar Haveli. Originally founded in 2000, it became a public limited company in 2018. Add this stock to the watchlist.

2. Wonder Electricals Ltd (Rs 1,028.85)
   

   Wonder Electricals Ltd, is a fully integrated end-to-end manufacturer and supplier of Ceiling fans, Exhaust fans, Pedestal fans and brushless DC (BLDC) fans. Shares of the company were locked in an upper circuit of 5% for the day indicating increased buyer interest. The stock has delivered year till date returns of whopping 148.85%. Hence given such momentum, keep this stock in your radar.

3. Oriental Aromatics Ltd (Rs 369)
   

   Oriental Aromatics Ltd is one of the largest manufacturers of specialty-based aroma chemicals, and camphor, with product range including Synthetic Camphor, Terpineols, Pine Oils, Astromusk & other specialty aroma chemicals which is used in various industries like Cosmetics, Soaps, Pharmaceuticals etc. Shares of the company experienced a significant surge in trading volume today, surpassing its weekly average by 32.8 times. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.

4. Ugar Sugar Works Ltd (Rs 72.90)
   

   Ugar Sugar Works Ltd, established in 1939 in Ugar Khurd, Karnataka, began with a capacity of 500 TCD. Now, it operates two units in Karnataka with a total capacity of 22,500 TCD, a 59.50-MW co-generation unit, and a 45-KLPD molasses-based distillery. The Board has recommended a 25% dividend for FY 2023-24 from current year’s profits. Keep this stock on your watchlist.

5. Lemon Tree Hotels Ltd (Rs 140.25)
   

   Lemon Tree Hotels Ltd is 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. The company is set to release its Q4FY24 results tomorrow and the stock has delivered up 16.85% returns for the year till date. 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.