The Indian stock market witnessed a notable recovery beginning in March 2025, with the Nifty 50 gaining 12% and the broader Midcap and Smallcap indices surging by 20% and 22%, respectively, since their February lows. This broad-based rally was supported by various factors, including Q4FY25 earnings coming in line with expectations, easing geopolitical tensions, favourable bilateral trade developments, and a positive macroeconomic setup for FY26. Improved risk appetite also contributed to sustained inflows into equities.
In the last month alone, the Smallcap index rose 9.6%, while the Midcap index was up 6.1%. The benchmark Nifty 50 recorded a more modest gain of 1.7% over the same period. Most sectoral indices ended the month in positive territory, except for FMCG and Pharma. The following data, compiled by domestic brokerage firm Axis Securities, identifies top stock picks across small and midcap segments with upside potential of up to 28%.
