These 45 smallcap stocks gain 15-40% as Sensex logs second weekly gain led by global cues; do you own?

On the stock-specific front, 45 smallcap stocks logged gains in the range of 15 per cent – 40 per cent last week, outperforming the index. Neuland Laboratories, Suzlon Energy, Jaiprakash Power, SVP Global, Den Networks, Orient Green Power, Arvind Fashions, Welspun Enterprises, Dilip Buildcon, JK Lakshmi Cement, Sigachi Industries, Force Motors, Arihant Super, GMDC, are among the smallcaps that logged a double-digit rise in their share prices last week.

Markets’ Weekly Print

Markets began the week on an upbeat sentiment but the benchmarks opened with an upside gap but muted global cues capped the movement thereafter. The performance was rangebound mid week, however Nifty 50 and Sensex, settled closer to the week’s high at 19,425.30 and 64,904.60 respectively on the last day.

Also Read: Down 4%, Nifty Midcap 150 declines more than Nifty 50 in October on global headwinds

On a cumulative basis, the more domestically-focused small- and mid-caps logged 3.09 per cent and 2.89 per cent weekly gains, respectively, posting their best week in two months amid persistent retail inflows. On a weekly basis, the BSE benchmark advanced 540.9 points or 0.84 per cent, and the Nifty rose 194.75 points or 1 per cent.

The Nifty smallcap index marked a historic high, surging over 3 per cent during the week, fueled by a record level of Systematic Investment Plans (SIP) reaching approximately ₹17,000 crore per month.

Pharma stocks logged 4.26 per cent weekly gain, supported by post-earnings rally in key constituents like Lupin and Aurobindo Pharma. Information technology (IT) companies, which earn a significant share of revenue from the US, fell 0.26 per cent after Fed Chair Jerome Powell said that the US central bank was not confident that interest rates are high enough to tame inflation.

Oil & gas, the third heaviest sector in the Nifty 50, rose 2.53 per cent for the week as crude oil prices slipped to near $80 per barrel. Softer oil prices is positive for importers of the commodity like India as well as its oil marketing companies.

Markets ended the week higher despite two days’ fall. Fed Chair Powell also suggested that the interest rate might rise further impacting stocks and bonds. The rupee hit a fresh record low and the year bond yield rose.

Previous Session

On Friday, the domestic equity benchmarks Sensex and Nifty 50 settled higher on Friday supported by fag-end buying in select heavyweights, including HDFC Bank and ITC, despite weak global cues. Concerns over interest rate hikes persisted after Fed Chair Jerome Powell’s hawkish comment on Thursday while the Israel-Hamas continues.

Nifty 50 at 19,351.85 against the previous close of 19,395.30 and touched its intraday high and low of 19,451.30 and 19,329.45 respectively, before ending at 19,425.35, up 30 points, or 0.15 per cent.

The 30-share Sensex pack ended 72 points, or 0.11 per cent, higher at 64,904.68. Mid and smallcaps outperformed the benchmarks. The BSE Midcap index rose 0.33 per cent while the Smallcap index ended with a gain of 0.38 per cent.

Also Read: Dividend Stocks: Power Grid, IRCTC, United Spirits, MRF among others to trade ex-dividend next week; check full list

“Selective buying helped markets end marginally higher despite other Asian and European counterparts struggling on the back of selling pressure. Foreign fund outflows from the domestic market have been of concern… Also, the volatile US treasury yields have been prompting overseas investors to exit emerging markets over the past few months,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Where are markets headed?

During Samvat 2079, the BSE Sensex jumped 5,073.02 points or 8.47 per cent, while the Nifty climbed 1,694.6 points or 9.55 per cent. During this period, the market capitalisation of BSE-listed surged over ₹43.81 lakh crore to reach ₹3,20,29,232.24 crore.

Going into Samvat 2080, analysts expect markets would continue its outperformance on the back strong earnings and strong economic outlook.

‘’Nifty ended the Samvat 2079 on a positive note despite several global challenges. Nifty gained 9.4 per cent in this period and made a new life high crossing 20k mark for the first time,” said said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Stock exchanges will conduct a one-hour special the muhurat trading session on the occasion of Diwali on November 12. The symbolic trading session will be held between 6 pm and 7.15 pm. This includes a 15-minute pre-market session.

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: 11 Nov 2023, 08:30 PM IST