Over 45 smallcap stocks rose 10-30% as Sensex logs fourth straight weekly gain; do you own?

On the stock-specific front, Munjal Auto, Summit Securities, Talbros Auto, 63 Moons Tech, Tata Investment, GE Power India, PCBL, Titagarh Railsystems, DCX Systems, Railtel Corporation of India, Jindal Stainless, SpiceJet, MSP Steel & Power, Texmaco Rail, and others are among the smallcaps that logged a double-digit rise in their share prices last week.

Markets’ Weekly Print

Markets consolidated in a narrow range and ended marginally higher, taking a breather after the recent surge. After the muted start, the benchmarks tried to regain strength in the following sessions but mixed signals from the global front and divergence among the heavyweights capped the move.

On the weekly front, the BSE benchmark climbed 175.31 points or 0.26 per cent, and the Nifty advanced 62.9 points or 0.31 per cent. IT lost 0.42 per cent this week and 0.97 per cent on the day. IT companies, which earn a significant share of their revenue from the US, had jumped 5.07 per cent last week, their best in 16 months.

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Realty extended its winning streak to the fourth week, when it added about 1.5 per cent. The stocks jumped 20.57 per cent over the last four weeks, aided by strong quarterly earnings and steady demand outlook. Pharma stocks advanced 0.95 per cent. The stocks have gained in seven of the eight sessions since the release of soft US inflation data on November 14.

The more domestically focussed small-caps lost 0.39 per cent this week, and no longer outperformed the blue-chips. Mid-caps rose 0.57 per cent. Small- and mid-caps have gained 42 per cent and 33 per cent, respectively, so far in 2023, outperforming a 9.33 per cent rise in Nifty 50.

“We advise caution in the small- and mid-cap space after the sharp rally in 2023, predominantly driven by retail inflows,” said Pramod Gubbi, founder of Marcellus Investment Management.

Previous Session

Domestic benchmark equity indices Sensex and Nifty 50 ended flat on Friday weighed down by a slide in information technology (IT) and fast-moving consumer goods (FMCG) stocks in the midst of mixed global cues. On the other side, metal, pharma, and bank stocks rose. However, buying interest in banking counters helped the bourses limit the losses, the traders said.

The 30-share BSE Sensex ended lower by 47.77 points or 0.07 per cent at 65,970.04 level while the Nifty 50 closed at 19,794.70 level, down 7.30 points or 0.04 per cent. Despite the lack of significant movements, the Nifty 50 managed to extend its weekly winning streak, securing a 0.34 per cent gain and closing just below the 19,800 mark.

The Nifty 50 has settled above 19,600 levels in every session since November 14, but has faced resistance at 19,800-19,900 levels.

On the broader market front, the Nifty Midcap 100 closed flat, similar to the previous session, while the Nifty Smallcap 100 closed 0.30 per cent higher than the benchmark indices. The fear gauge index, the India VIX ended 0.13 higher on Friday.

Hero MotoCorp and Bajaj Auto jumped 6.41 per cent and 5.31 per cent, respectively, extending their post-earnings rally. Both the auto makers were among the top gainers this week.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 25 Nov 2023, 08:40 PM IST