Overnight Digest: Top 5 mid and small-cap stocks to watch out for May 2

On Tuesday, the market witnessed a significant downturn in the final hour of trading, retracting from its record highs. The Sensex, a key index, decreased by 0.25% and closed at 74,482.78 points, while the Nifty, another important index, saw a slight decline of 0.17% to close at 22,604.85 points.

In terms of sectors, the automobile, real estate, public sector banks, and financial services sectors recorded gains, while the IT, media, metal, and pharmaceutical sectors faced losses.

Among individual stocks, M&M, Power Grid, and Shriram Finance were the top gainers, while Tech Mahindra, BPCL, and JSW Steel were among the top losers in the Nifty 50 index.

Overall market sentiment was negative, with more stocks declining than advancing. The broader market saw modest movements, with the Nifty Midcap index closing slightly higher by 0.07%, and the Nifty Smallcap index experiencing a slight decline of 0.04%.

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

• Jana Small Finance Bank Ltd (Rs 600.35)

Jana Small Finance Bank Ltd is a NBFC primarily engaged in providing MSME loans, affordable housing loans, term loans to NBFCs, loans against fixed deposits, two-wheeler loans, and gold loans. The shares of the company experienced a significant surge in trading volume today, surpassing its weekly average by almost 34 times. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.

• Jyoti CNC Automation Ltd (Rs 849.80)

Jyoti CNC Automation Ltd is a leading manufacturer of simultaneous 5-axis CNC machines in India, with a 10% market share in the country. It has years of expertise in designing & manufacturing tools for companies in Aerospace, Defence, Auto Components, General Engineering, and other industries. Shares of the company were locked in an upper circuit of 5% for the day indicating increased buyer interest. The stock has delivered a 128.44% return for the year to date. Hence given such momentum, keep this stock on your radar.

• Pudumjee Paper Products Ltd (Rs 83.50)

Today, the shares of Pudumjee Paper Products Ltd reached a new 52-week high price of Rs 85.10, signalling bullish momentum. The company is engaged in the business of manufacturing Specialty Paper for Wrapping and Food Grade Packaging Paper, Household and Sanitary Paper, etc. Add this stock to the watchlist.

• Sonata Software Ltd (Rs 691.15)

Consider adding Sonata Software Ltd to your watchlist for tomorrow. They specialize in providing IT services and solutions to clients across the USA, Europe, the Middle East, Australia, and India. Recently, they partnered with Denodo to enhance data value through Logical Data Management. This collaboration combines Denodo’s expertise in data management with Sonata’s integration skills, potentially leading to positive developments in the company’s performance.

• Vardhman Special Steels Ltd (Rs 297.3)

Vardhman Special Steels Ltd is engaged in manufacturing of Billets, Steel bars & Rods, and Bright Bars of various categories of special and alloy steels. The company is set to release its Q4FY24 results on Wednesday. The stock closed up by 1.82% today. 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.