Over 50 smallcap stocks log double-digit growth even as Sensex snaps longest weekly winning run in 6 years
As many as 50 smallcap stocks logged a double digit rise in their stock prices – in the range of 10-40 per cent last week, even as the 30-share BSE Sensex snapped its longest weekly winning streak in six years, over profit booking at record high levels earlier in the week.
On the stock-specific front, HFCL, Kiri Industries, Hindustan Copper, SVP Global, Arvind, Cyient, SpiceJet, Heritage Food, Thermax, Coffee Day Enterprises, INOX Borax, Sangam India, V-Mart Retail, MSTC, IIFL Securities, HCL Infosys, and others are among the smallcaps that logged a double-digit rise in their share prices last week.
Markets’ Weekly Print
On the weekly front, the BSE benchmark declined 376.79 points or 0.52 per cent and the Nifty dipped 107.25 points or 0.49 per cent – dragged by the fall in recent outperformers like financials and auto stocks.
The blue-chip indexes had gained 12.65 per cent and 12.07 per cent over the last seven weeks, aided by strong domestic macroeconomic data, a return of foreign inflows due to improving US rate outlook and moderation in oil prices.
The BSE Midcap index lost almost a per cent, while the BSE Smallcap index declined by about 0.2 per cent this week. “The rally in Indian markets will continue as the outlook remains positive, but the pace may moderate a bit,” said Ajit Banerjee, chief investment officer at Shriram Life Insurance.
This month, the surge in domestic equities closely follows Fed Chair Jerome Powell’s acknowledgment of the risks of delaying rate cuts, bolstering expectations of a 25 basis points (bps) rate cut by March and fueling a rally across global stock markets.
The dovish stance by US Fed also led to a crash in US bond yields to 4 per cent, which intensified foreign inflows this month. Foreign institutional investors (FIIs) were net sellers for all five days last week, divesting over ₹6,000 crore, but domestic investors pumped over ₹9,000 crore in Indian equities.
Vinod Nair, Head of Research at Geojit Financial Services said, “The ‘buy on dips’ strategy continues to drive investors during the subdued week. Mid and small caps remain in the limelight, benefiting from ease in oil prices and the anticipation of a potential rate cut in CY24, supported by slower-than-expected US GDP growth and weakness in the dollar, signalling early rate cuts.”
‘’Realty and Auto sectors shine, while PSU banks outperform peers on account of improvements in balance sheets and profitability. Despite a premium valuation, the short-term positive trend persists, supported by a strong revival in FIIs buying & stock specific actions. Heading into the festive season and year-end, we can anticipate a range-bound trade scenario with limited data points,” added Nair.
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Published: 23 Dec 2023, 09:19 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.