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The Economic Times
The Economic Times
Debaroti Adhikary

Midcap stocks ignore Middle East war, AI worries to jump up to 85% in 2026. More rally or sharp correction ahead?

Dalal Street has seen sharp downswings and a slow recovery in 2026, as AI worries, the raging war in the Middle East and other headwinds spooked investors. But a striking trend amid such volatility is the outperformance of the broader markets, particularly the midcap stocks, over benchmark indices and their largecap constituents.

While the Nifty 50 index declined more than 7% in the first six months of 2026, the Nifty Midcap 150 index has gained 2.5% in the same period of time. Hitachi Energy India, Thermax, Solar Industries, CG Power, Bank of Maharashtra, Bharat Forge and BSE shares were among the top gainers, jumping up to 85% in the first six months of 2026.

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