Overnight Digest: Top 5 mid and small-cap stocks to watch out for May 27

On Friday, the market failed to maintain its record highs reached during the day.

The Sensex fell slightly by 0.01% to close at 75,410.39, while the Nifty dropped by 0.05% to end at 22,957.10.

Nifty Media, Nifty Financial Services, and Nifty Bank closed positively, whereas Nifty FMCG, Nifty Realty, and Nifty IT were the major underperformers.

Among the top gainers were HDFC Bank, L&T, and Bharti Airtel, while Adani Ports, Tata Consumer Products, and Tech Mahindra were the top losers in the Nifty 50.

There were 806 advancing stocks compared to 1,303 declining stocks, indicating a negative sentiment in the broader market. The broader market also showed a mixed performance, with Nifty Midcap slightly up by 0.01% and Nifty Smallcap down by 0.17%.

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

1. Welspun Enterprises Ltd (Rs 427.00)

   Today, the shares of Welspun Enterprises Ltd reached a new 52-week high price of Rs 440 signalling bullish momentum. The stock has delivered 21.60% returns in the past 1 month. The Company operates in the infrastructure space with investments in oil & gas. In the infrastructure space, WEL is focused on the road and water sectors. While the Company’s main focus is on Hybrid Annuity Model (HAM) projects as a developer, it also takes up value accretive projects in the BOT-Toll and EPC space. Add this stock to the watchlist.

2. Prakash Pipes Ltd (Rs 406.15)

   Prakash Pipes Ltd is engaged in the manufacturing of PVC pipes & fittings and packaging products. Shares of the company were locked in an upper circuit of 9% for the day indicating increased buyer interest. The stock has delivered 151.64% return in the past 1 year. Hence given such momentum, keep this stock in your radar.

3. NIIT Ltd (Rs 107.25)

   NIIT Ltd is a leading Skills and Talent Development Corporation that is building a manpower pool for global industry requirements. Shares of the company experienced a significant surge in trading volume today, surpassing its weekly average by 29.6 times. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.

4. SBC Exports Ltd (Rs 29.05)

   SBC Exports Ltd, today announced a five-year expansion plan focusing on retail stores, franchising, and exports. The company plans to open 30 retail stores in Tier-2 and Tier-3 cities, launch 50 franchise stores, and increase export volume by 30%, targeting emerging markets in Asia, Africa, and South America. Additionally, SBC aims to secure new government projects to supply garments and manpower. Keep this stock on your watchlist.

5. Paras Defence and Space Technologies Ltd (Rs 859.40)

   Paras Defence and Space Technologies Ltd is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The company caters to four major segments – Defence & Space Optics, Defence Electronics, Heavy Engineering and Electromagnetic Pulse Protection Solutions. The company is set to release its Q4FY24 results tomorrow and the stock has closed up 10.33% from its yesterday’s closing price. 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.