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

On Wednesday, the market saw a significant decline, with both the Sensex and Nifty closing lower by over 1%. Sensex ended at 72,304.89, down 1.08%, while Nifty closed at 21,951.15, down 1.11%.

Most of the Nifty stocks, 46 out of 50, ended in the red, with some stocks falling by up to 4%. BSE-listed companies collectively lost over Rs 6 lakh crore in market capitalisation. Public sector undertakings (PSUs) saw a notable decline, with the PSU index slipping 2% and erasing Rs 1.5 lakh crore in the market cap.

Top gainers among Nifty 50 stocks included Hindustan Unilever, Infosys, and TCS, while Power Grid, Apollo Hospitals, and Eicher Motors were among the top losers.

All major sectors performed poorly, with Nifty Media, Nifty Energy, Nifty PSU Bank, and Nifty Realty being the biggest losers.

In the broader market, both Nifty Midcap and Nifty Smallcap indices underperformed, closing lower by 1.94% and 1.87%, respectively. 80% of the stocks in the Midcap index ended lower.

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

1. Bajaj Healthcare Ltd (Rs 358.15)
   

   Bajaj Healthcare Ltd is a bulk drug manufacturer manufacturing and supply of various Active Pharmaceutical Ingredients (APIs), Amino acids and Nutritional supplements for the Pharmaceuticals, Neutraceuticals, and Food industries. The shares of the company experienced a significant surge in trading volume today, surpassing its weekly average by almost 66 times. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.

2. Thyrocare Technologies Ltd (Rs 681)
   

   Shares of Thyrocare Technologies Ltd reached a new 52-week high price of Rs 722.65 today. The company is engaged in the business of the healthcare industry and is involved in providing quality diagnostic services at affordable costs to patients, laboratories, and hospitals in India. Thus keep this stock on your watchlist.

3. Hind Rectifiers Ltd (Rs 680.05)
   

   The shares of Hind Rectifiers Ltd were locked in an Upper circuit of 10% indicating bullish momentum. The company is primarily engaged in developing, designing, manufacturing, and marketing Power Semiconductor, Power Electronic Equipment, and Railway Transportation Equipment.

4. Karnataka Bank Ltd (Rs 419.75)
   

   Karnataka Bank is engaged in providing a wide range of banking & financial services involving retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business. The Board of the Karnataka Bank Limited at its meeting held today approved the allotment of 37,72,730 equity shares at a premium of Rs 255.06/- each on a preferential basis to Qualified Institutional Buyer ICICI Lombard General Insurance Company Limited. The total consideration amount is around Rs 100 crore. Given such positive development, Investors should keep this stock on the watchlist.

5. Cupid Ltd (Rs 2,701.2)
   

   Cupid Ltd is in the business of dealing, marketing, and manufacturing rubber contraceptives and allied prophylactic products. The stock has been in the upper circuit for the past 3 days and has delivered 1000% returns in past 1 year. Given these positive developments, Investors should keep this stock on your watchlist.

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.