Mumbai: After a major sell-off this year, the BSE Midcap index gained nearly 1% on Thursday, outperforming benchmark indices, its biggest single-day rally since 28 December 2018. The Reserve Bank of India’s (RBI's) dovish stance and surprise rate cut fired up the small and midcap stocks, with the rate cut decision after the interim budget expected to boost consumption demand further and lower the cost of capital. The BSE midcap index closed up 0.74%, while the BSE smallcap index ended up 0.84%. So far this year, both the BSE midcap and the BSE smallcap indices are down around 6% against a gain of 2% by the Sensex and the Nifty. In 2018, the BSE midcap index fell 13.38%, while the BSE smallcap index was down 23.53%.

Source: Mint February 07, 2019 13:38 UTC