Servotech, FACT, and NIBL among top 10 gainers as select midcaps defy market slump

Despite a sharp correction in frontline indices on June 3, 2025, select midcap and smallcap stocks on the NSE delivered outsized gains, led by Servotech Power Systems, Fertilisers and Chemicals Travancore, and Dharmaj Crop Guard. Retail momentum, favorable sectoral cues, and institutional flows into agri-inputs and EV infrastructure helped these ten stocks outperform sharply even as the Nifty and Sensex ended lower for a third straight session. Below is a stock-by-stock breakdown of the top gainers and the factors driving their upward moves.

Why Did Servotech Power Systems Ltd (NSE: SERVOTECH) Stock Jump Nearly 20%?

Servotech Power Systems Ltd stole the spotlight on June 3, 2025, with its stock soaring 19.99% to close at ₹148.00. The company, which has been at the forefront of India’s EV charging infrastructure push, saw trading volumes cross 1.09 crore shares, signaling elevated retail and algorithmic activity. This near-20% upper circuit comes amid speculative tailwinds linked to its clean tech expansion and broader investor optimism in the electric mobility space. Servotech’s high-beta profile, coupled with low free float and periodic announcements around solar integration, make it a classic mover in any energy-themed rally. In the absence of a fresh corporate announcement, the movement is being interpreted as a technical rally, supported by operator interest and broader positioning around renewable energy narratives.

What Triggered the Rally in National Insurance Brokers Ltd (NSE: NIBL)?

National Insurance Brokers Ltd gained 19.98% to finish at ₹37.17, registering its strongest single-day move in several months. With over 1.3 crore shares traded, the move in NIBL was backed by renewed attention to small-cap financial services stocks, particularly those linked to B2B insurance distribution and digital aggregation. While no new disclosures were made to exchanges, the stock is reportedly being re-rated by a segment of retail investors anticipating a pivot to technology-driven growth in the fragmented insurance brokerage market. Volumes suggest a coordinated build-up, though fundamental triggers remain limited, making the move largely sentiment and momentum-driven.

Why Did Fertilisers and Chemicals Travancore Ltd (NSE: FACT) See a 15.5% Surge?

Fertilisers and Chemicals Travancore Ltd continued its strong upward trajectory, gaining 15.51% to close at ₹1,026.15. FACT’s rally is closely tied to the broader fertilizer sector tailwind stemming from favorable monsoon updates and speculation around increased subsidy allocations for Kharif crops. The European Union’s recent move to restrict certain fertilizer imports, including from Russia, is also contributing to optimism around domestic players. FACT has also benefited from its position as a key PSU in the fertilizer segment, often attracting low-risk investors during commodity upcycles. Heavy delivery-based buying and volumes of over 17 crore shares highlight the strong institutional participation behind the move.

How Did Sonata Machinery Ltd (NSE: SONAMLTd) Climb Over 15%?

Sonata Machinery Ltd rose 15.25% to close at ₹45.27, driven by low-float dynamics and a strong rebound from technical support levels. The company’s mid-cap machinery and tools portfolio aligns well with India’s capex and infrastructure push. Analysts tracking the space note that SONAMLTd is part of a broader microcap rally where stocks with industrial exposure are attracting thematic allocations from retail and small institutions. The company had previously hinted at dealer network expansion in Northern India, which, while not yet translated into earnings, is being priced in ahead of any FY26 capex announcements. Despite the surge, the company remains under-researched, which adds to volatility.

Why Did Agro Phos India Ltd (NSE: AGROPHOS) See Double-Digit Gains?

Agro Phos India Ltd jumped 14.67% to close at ₹40.40, following a sharp spike in volume to over 1 crore shares. The stock’s performance is part of a broader fertilizer and agri-inputs rally, supported by increasing sowing activity and positive rainfall expectations. The company, which produces single super phosphate and zinc-based micronutrients, benefits directly from seasonal farm demand. Investors are also factoring in improved offtake post-subsidy disbursements and potential incentives under India’s agri-chemical export framework. Given the stock’s low price band, it often attracts rotational bets during sector-wide rallies, with delivery ratios pointing to swing traders as key participants.

What’s Behind the Rally in Lexus Granito (India) Ltd (NSE: LEXUS)?

Lexus Granito gained 13.89% to end at ₹36.00, as building material and tile-related stocks saw revived interest following indications of GST rationalization talks in the sector. With urban housing starts gaining momentum in Tier II and Tier III cities, demand visibility for vitrified and ceramic tiles is improving. The company’s regional footprint and brand recall in Northern and Western India place it in a favorable zone to benefit from this demand shift. The trading volume, although lower at just over one lakh shares, suggests the rally was largely delivery-based. Analysts note that stocks like Lexus often run ahead of budgetary announcements tied to housing or infra incentives.

Why Did Welspun Investments and Commercials Ltd (NSE: WELINV) See a 12.53% Move?

Welspun Investments saw its stock price rise to ₹1,054.90, marking a 12.53% gain. As a relatively illiquid counter, WELINV‘s stock often sees sharp price action on low volume. On June 3, just over 14,000 shares changed hands. However, the move was enough to trigger speculative positioning among retail forums, where the stock is often discussed due to its group backing and strategic stakes in other listed Welspun entities. There’s no specific corporate event or news flow behind this rally, but the move could be linked to cross-holdings revaluation expectations or long-term reorganisation speculation among group companies.

Why Is Vinyl Chemicals (India) Ltd (NSE: VINYLINDIA) in Focus?

Vinyl Chemicals rose 11.81% to ₹341.90 amid a broader recovery in the specialty chemicals space. The company is engaged in the manufacture and trading of vinyl acetate monomer (VAM), a crucial input for adhesives and coatings. The stock has been gaining traction after a weak Q4 FY25, with investors betting on margin normalization and improved realizations in international markets. In recent months, lower ethylene prices and normalized freight costs have lifted sentiment for chemical manufacturers with export exposure. VINYLINDIA also benefits from a relatively lean balance sheet, which positions it well in an interest rate-sensitive global environment.

What Drove Dharmaj Crop Guard Ltd (NSE: DHARMAJ) Up by 11.14%?

Dharmaj Crop Guard closed at ₹277.30, registering an 11.14% gain following a steady inflow of funds from institutional investors and momentum traders. The company’s earnings report for Q4 FY25 had shown an 80% year-on-year rise in sales, reflecting strong product demand across its agri-inputs portfolio. Analysts have also highlighted the company’s expansion into backward integration and its recent product approvals as potential long-term margin drivers. On June 3, nearly 9.4 lakh shares were traded, with strong delivery volume indicating positional builds by domestic funds. Its growing footprint in Latin American and African export markets continues to attract medium-term investor interest.

Why Did Indian Swift Laboratories Ltd (NSE: INDSWFTLAB) Rally?

INDSWFTLAB ended the session 10.09% higher at ₹90.38. The stock, which operates in the pharmaceutical intermediates and APIs space, has been on investors’ watchlists following rising expectations of supply chain localization in the Indian pharma sector. While there was no company-specific update on the day, trading volumes of 6.6 lakh shares and a favorable technical breakout above ₹88 appear to have fueled the rally. Traders cited short-covering and the potential for order inflows from global generics players as speculative drivers.

What Does the Broader Sentiment Suggest?

June 3’s rally in these ten counters occurred despite the Nifty 50 falling by 174.10 points. This sharp divergence reinforces the narrative that retail and midcap rotational flows continue to dominate pockets of the market, even during broader index corrections. The top gainers reflected sectoral strength in agri-inputs, specialty chemicals, EV infrastructure, and export-focused manufacturing — all of which align with India’s ongoing economic priorities.

Retail forums were particularly active on stocks like Servotech, Dharmaj, and NIBL, with intraday volumes and social media trends indicating breakout signals were widely discussed. Institutions appeared to favor FACT and Dharmaj Crop Guard, based on delivery statistics.

What Comes Next for Investors?

While short-term technical rallies have lifted many of these counters, sustained gains will depend on concrete corporate developments, policy announcements, and earnings visibility. The onset of the monsoon season, June inflation data, and upcoming FY26 guidance updates could influence momentum in sectors like fertilizers, EV infrastructure, and chemicals.

For retail investors, the key will be tracking delivery volumes, promoter activity, and upcoming AGMs or board meetings, especially for stocks like NIBL, INDSWFTLAB, and LEXUS.