Select Stocks Rally Up to 16% While Benchmarks Bleed
Firstsource Solutions surged 12.22% to ₹264 on Friday, one of several small-cap and mid-cap names that bucked a brutal session. The Sensex was trading 415 points, or 0.53% down, at 77,409, and the Nifty50 was down 0.49% at 24,209 as of midday, with banks and auto stocks doing most of the damage. Meanwhile, select earnings-driven names were moving in the opposite direction entirely, with gains running up to 16% across the broader market.
The Nifty SmallCap 100 was up 0.35% while the Nifty MidCap was down 0.16%, with Nuvama Wealth Management, Firstsource Solutions, and Mangalore Refinery and Petrochemicals among the top gainers in the SmallCap 100 index. The session was a clean split, if you owned earnings triggers, Friday worked. If you owned banks or autos, it didn’t.
Firstsource: The Biggest Mover, With an Asterisk
Firstsource reported Q4 FY26 revenues of ₹25,835 million (US$283 million), up 19.5% year-over-year, with EBIT at ₹3,143 million, or 12.2% of revenues, up 29.8% YoY. Reported PAT came in at ₹205.2 crore, up 70.6% QoQ and 27.7% YoY.
The asterisk: constant currency revenue growth was 3% QoQ and 11% YoY, with organic growth running at approximately 1.7% QoQ. The remaining 1.3 percentage points came from acquisitions. A delayed UK collections deal and temporary suspension of Medicare Advantage programs due to regulatory changes held back the quarter, both resolved now, which is why brokerages are backing the guidance rather than punishing the miss.
Nomura maintained Buy with a ₹330 target, calling Firstsource the “preferred small-cap IT/BPO stock.” Nuvama Institutional Equities upgraded to Buy while cutting the 12-month target from ₹350 to ₹320, citing FY27 earnings growth potential of over 25%. Anand Rathi also retained Buy, noting the deal pipeline has hit an all-time high of over $1 billion, with four large deals won in each of the last five consecutive quarters.
Nuvama Wealth: Pre-Results Rally Ahead of May 11 Board Meeting
Nuvama Wealth Management’s board is scheduled to meet on May 11, 2026, to approve Q4 and full-year FY26 results and will also consider declaring an interim dividend for FY27. The stock was rallying ahead of that, classic pre-results positioning in a wealth management name that has delivered 31% returns over the past year. Nuvama Wealth shares were at ₹1,561.80 on May 8, up 30.98% over the past twelve months, with a 52-week range of ₹1,096.90 to ₹1,701.70.
What stood out is that Nuvama’s move wasn’t just pre-results momentum. NSE had issued two warning letters to Nuvama Wealth on April 29 for periodical submission observations, and the exchange had levied a ₹8.69 lakh penalty earlier in April, yet the stock was still among the top gainers. Markets are clearly looking past regulatory noise and pricing the May 11 earnings print instead.
Godfrey Phillips: Cigarette Stocks Finding a Bid Again
Godfrey Phillips was another name highlighted in the broader midcap rally. The tobacco major’s Q4 FY26 results are yet to be formally announced, but the stock had already rallied up to 13% in recent sessions after the company implemented cigarette price hikes and added to F&O from April 1, which typically brings in fresh institutional participation and liquidity. With an annual profit of ₹1,284 crore and 23.9% profit CAGR over five years, the fundamental case was already there. The F&O listing gave traders a new reason to build positions.
Crude Back Above $100; Geopolitics Dictated the Benchmark Direction
Brent crude rose 1.43% to $101.48 per barrel on the Intercontinental Exchange as hopes for an early end to US-Iran hostilities faded, while the rupee depreciated 45 paise to 94.67 against the dollar after US and Iranian forces exchanged fire near the Strait of Hormuz. Rate-sensitive sectors, banking and auto, bore the brunt. Nifty Private Bank, Nifty PSU Bank, and Nifty Auto underperformed, while Nifty IT and Nifty Pharma rose the most as dollar-revenue firms benefited from rupee weakness.
Oddly, this environment may have actually amplified the earnings-driven moves. With large-cap banks in the red, institutional money rotated into the handful of names with clean Q4 catalysts, and that’s where Firstsource, Nuvama, and Godfrey Phillips found their buyers.
Also Read: Brent Crude Hits $120 — Highest Since 2022 as Strait of Hormuz Stays Shut
Midcap 100’s Historic 62,000 Week
On May 7, the Nifty Midcap index climbed to a fresh all-time high while the Smallcap index recorded robust gains, the first time the Midcap 100 crossed 62,000. Friday’s session tested whether that milestone held under geopolitical pressure. The MidCap 100 dipped just 0.16%, barely a rounding error. The broader Nifty Midcap 100 and Nifty Smallcap 100 had already risen 1.76% and 1.93%, respectively, on Wednesday alone when US-Iran peace deal hopes had briefly swept markets, meaning Friday’s resilience wasn’t standalone. It was the third test of a week-long trend.
FAQ
Q: Why did Firstsource Solutions stock jump 12% on May 8, 2026?
Firstsource surged 12.22% after strong Q4 FY26 results and multiple brokerage upgrades. Nomura reaffirmed Buy with a ₹330 target, calling it the “preferred small-cap IT/BPO stock.” Nuvama upgraded to Buy, projecting over 25% earnings growth in FY27.
Q: What is Firstsource’s FY27 revenue and margin guidance?
Firstsource guided for 10–13% revenue growth in constant currency for FY’27, with an EBIT margin in the 12.25–12.75% band. Organic growth is guided at 7.5–10.5%, with 2–2.5% from the TeleMedik acquisition.
Q: When is Nuvama Wealth’s Q4 FY26 results date?
Nuvama Wealth’s board meets on May 11, 2026, to approve Q4 and full-year FY26 results, with an earnings call scheduled for May 12, 2026.
The next hard trigger for this cluster of midcap and small-cap names arrives. May 11–12 with Nuvama’s results and earnings call, with analyst consensus price targets ranging from ₹1,485 to ₹2,000 for Nuvama, the board’s dividend decision and AUM commentary will set the tone for the stock into Q1 FY27.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risk.
