Smallcaps & midcaps rally! Firstsource Solutions, Nuvama, Godfrey Phillips, other stocks jump up to 16%

The shares of smallcap and midcap companies sharply rallied up to 16% on Friday, with broader market indices continuing to outperform benchmark Sensex and Nifty, even as Iran-US war and oil prices above $100 per barrel soured overall market sentiment.

The Nifty Smallcap 100 index gained 0.35% and the Nifty Midcap 100 index slipped into the red with marginal losses, while the benchmark Nifty was down more than 0.5% to drop below 24,200, as of 12 pm. Notably, the midcap index crossed the 62,000 mark for the first time ever this week.

Broader markets' outperformance comes even as India VIX, which measures volatility in markets, jumped more than 2% to 17.02.

Top smallcap gainers today

Firstsource Solutions shares rallied more than 16% today. The company on May 6 reported a consolidated net profit of Rs 205 crore for the fourth quarter of FY26, marking a 28% rise from the Rs 161 crore net profit reported in the corresponding quarter of the previous financial year. Its revenue from operations, meanwhile, gained 21% year-on-year (YoY) to Rs 2,613 crore during the quarter under review.

Nomura maintained a 'Buy' call on the shares of Firstsource Solutions, with a target price of Rs 330 apiece. This implies an upside potential of more than 40% from the stock’s previous closing price. The international brokerage said that the company’s strong deal wins provide growth visibility. JM Financial also has a ‘Buy’ call on the stock, with a target price of Rs 290 apiece.

Nuvama Wealth Management shares jumped over 11%. The company announced on Thursday that Securities and Exchange Board of India (SEBI) has issued an administrative warning letter to its subsidiary, pertaining to observations related to broking and depository operations, including cybersecurity and Cyber Resilience Framework. It, however, clarified that there is no impact on the financials, operations or other activities of the listed entity.

Mangalore Refinery and Petrochemicals (MRPL) shares jumped nearly 8%, while Piramal Finance shares surged 6% and NBCC jumped 5%. Other notable smallcap gainers today, which rose up to 3%, include Angel One, Sagility, IFCI, Dr Lal PathLabs, Netweb Tech, Natco Pharma, PNB Housing Finance, Ather Energy, Kaynes Tech and more.

Top midcap gainers today

Coforge shares were the top midcap gainers, jumping 6% and extending gains after strong Q4 earnings. Coforge on May 5 reported a net profit of Rs 612.3 crore for the January-March quarter of FY26, marking a 134% surge from the Rs 261.2 crore net profit reported in the corresponding quarter of the previous financial year. Its revenue from operations, meanwhile, jumped 30% year-on-year (YoY) to Rs 4,450 crore during the quarter under review.

Jefferies maintained its ‘Buy’ rating on Coforge shares, with a target price of Rs 1,860 apiece. This implies an upside potential of nearly 45% from the stock’s previous closing price of Rs 1,285.30 apiece on the NSE. Nomura, Nuvama Institutional Equities and Motilal Oswal also have ‘Buy’ calls on the shares of Coforge, while Elara Capital recently upgraded its rating for the IT stock to ‘Accumulate’.

Godfrey Phillips India shares jumped 5%. Dabur India shares followed, rising more than 4% after the company announced price hikes along with the Q4 results. Mankind Pharma, Radico Khaitan and HUDCO shares gained around 3% each, while MCS and Biocon shares gained more than 2% each.

Persistent Systems, Laurus Labs, Polycab India, Mahindra & Mahindra Financial Services, Container Corporation of India (CONCOR), Astral, Aurobindo Pharma, Paytm and Colgate-Palmolive India were among the other notable gainers on the index, rising 1-2% each.

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