Over 50 smallcap stocks log double-digit growth as broader indices gain 1.5%; Reliance Infra, BEML among gainers

Apart from the above two, EMudhra, Swan Energy, Vadilal Industries, Capacite Infraprojects, Dhani Services, Praj Industries, Force Motors, Sapphire Foods India, Artemis Medicare Services, Skipper, JSW Holdings, Varroc Engineering, BEML, Finolex Industries, Cochin Shipyard, Novartis, Chalet Hotels, among other smallcaps logged a double-digit rise in their share prices last week.

Also Read: FPIs pump ₹38,098 crore in Indian equities, debt inflows at ₹13,223 crore; Will the trend continue in FY25?

Markets’ Weekly Print

On a weekly basis, the BSE benchmark climbed 188.51 points or 0.25 per cent, and the Nifty went up by 73.4 points or 0.33 per cent. Auto stocks jumped 1.67 per cent, taking weekly gains to 4.23 per cent. The domestically-focused small- and mid-caps rose about 1.5 per cent each this week, outperforming the benchmarks.

Mahindra and Mahindra, Maruti Suzuki, Tata Motors, Hero MotoCorp, Bajaj Auto and Eicher Motors added between two per cent and eight per cent this week. Realty stocks gained 5.34 per cent this week, while metals added 4.21 per cent. Analysts said that the drop in Brent crude prices after hitting nearly $88 per barrel earlier in the week has aided auto stocks, for whom crude is a key raw material.

US Federal Reserve maintained the key interest rates unchanged at 5.25 – 5.50 per cent for the fifth straight meeting on Wednesday, but signaled three rate cuts in 2024. US-rate sensitive IT stocks, however, lost 6.17 per cent despite the positive commentary, weighed down by Accenture’s revenue forecast downgrade for fiscal 2024. Wipro, Tata Consultancy Services, HCL Tech, LTI Mindtree and Infosys fell 3.5 per cent-eight per cent for the week.

Foreign institutional investors (FIIs) were net sellers in Indian markets last week and the net outflow stands at ₹83,65.53 crore, while domestic institutional investors (DIIs) were buyers for all sessions, with a total investment of ₹19,351.62 crore, according to stock exchange data.

‘’Last week’s mid & smallcap could recover halve as buying improved led by continued DIIs & FIIs inflows. The IT sector faced headwinds driven by global slowdown in spending. Investors redirected attention towards the realty sector, which emerged as the top performer of the week,” said Vinod Nair, Head of Research, Geojit Financial Services.

‘’The bounce is expected to continue in the short-term as traders punt to buy when the market is trading at oversold territory. However, concerns persisted regarding inflated valuations in mid and small-cap stocks. And large caps are expected to outperform in the medium term,” added Nair.

Previous Session

Domestic equity benchmarks Sensex and Nifty 50 settled higher for the third straight session on March 22 amid mixed global cues. Nifty 50 closed the day at 22,096.75, up 85 points, or 0.39 per cent, and Sensex settled at 72,831.94, up 191 points, or 0.26 per cent. Mid and smallcap indices outperformed. The BSE Midcap index rose 0.38 per cent while the Smallcap index jumped 1.06 per cent.

‘’Domestic equities joined the global rally after the US and UK central banks kept the rate unchanged. Nifty after a subdued start edged higher to close with gains of 85 points (+0.4 per cent) at 22097 levels. Broader market too ended in the green. Barring IT, all sectors ended in green with Auto, Pharma, and Realty being top gainers,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd. 

Also Read: Explained | Upside risk on inflation to export woes—here’s how the Red Sea crisis will impact Indian economy in FY25

Where are markets headed?

Ajit Mishra, SVP – Technical Research, Religare Broking Ltd said, ‘’Participants are taking comfort from the favorable global cues however Nifty is still facing a hurdle around the short term moving average i.e. 20 DEMA. We reiterate our view to focus on stock selection and trade management until we get some clarity over the next directional move.” 

Next week being a truncated one and the derivatives’ monthly expiry, one might see some volatility while Nifty is likely to consolidate at higher levels. Also, US GDP data and other key economic data would keep investors busy.

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

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Published: 23 Mar 2024, 09:42 PM IST