Over 30 smallcaps log double-digit as Sensex posts fourth straight weekly gain
Apart from the above two, Rallis, Infibeam Avenues, MOIL, Schneider Electric Infra, Zen Technologies, JSW Holdings, Hindustan Copper, SMS Pharma, Rico Auto, Marathon Nextgen, and others are among the smallcaps that logged a double-digit rise in their share prices last week.
Markets’ Weekly Print
Markets extended a gaining streak for the fourth successive week and rose nearly half a per cent with the NSE Nifty 50 and BSE Sensex rising 0.69 per cent and 0.51 per cent on the week, respectively – the best such streak in three months. The benchmarks gained about three per cent each in four weeks.
A strong up move at the beginning strengthened the bulls, followed by muted sessions in the middle. However, renewed buying in the final sessions aided the index to close around the week’s high, according to market experts.
On the sectoral front, pharma, energy and banking gained maximum while IT and Realty closed lower. At the same time, the underperformance continued on the broader front wherein the midcap index remained in a range while smallcap shed nearly three per cent.
“The momentum in domestic equities can persist till elections as history suggests,” analysts at Ambit Capital said. Banking is the only sector with relatively attractive valuations compared with the Nifty 50. Indices such as financial services, banks, public-sector banks and private banks gained between 0.6 per cent and four per cent this week.
The broader, more domestically-focussed small-caps dropped 2.18 per cent, while mid-caps added 0.36 per cent, both underperforming the blue-chip indexes on concerns over excessive fund inflows and stretched valuations.
Bajaj Auto gained 10.44 per cent, posting its best week in three years. The automaker was also the top percentage gainer on the Nifty 50 this week, driven by strong sales growth in February and a share buyback. Tata Motors rose 6.33 per cent on the week, on its plan to demerge into two listed companies that will run its commercial vehicles and passenger vehicles businesses.
Foreign institutional investors (FIIs) were buyers for three out of four sessions this week and the net investment value stands at ₹10,081.08 crore, while domestic institutional investors (DIIs) were buyers for all sessions, with a total investment of ₹10,129.17 crore, according to stock exchange data.
Foreign portfolio investors (FPIs) have bought ₹11,823 crore worth of Indian equities and the total inflow stands at ₹15,559 crore as of March 7, taking into account debt, hybrid, debt-VRR, and equities. FPIs infused ₹3,316 crore in debt markets so far this month, extending the positive momentum in bonds picked up in 2023.
Previous Session
The blue-chips extended their rally to record highs for a second session in a row on Thursday, March 7, led by financials, while US Federal Reserve Chair’s rate cut assurance supported sentiment. Domestic benchmarks traded choppy during the session but the Nifty 50 and the Sensex hit their fresh record highs of 22,525.65 and 74,245.17 in intraday trade.
Nifty 50 finally closed 20 points, or 0.09 per cent, up at 22,493.55 while the Sensex settled at 74,119.39, up 33 points, or 0.05 per cent. Both indices settled at their fresh closing highs. Mid and smallcap indices outperformed the benchmarks. The BSE Midcap index rose 0.39 per cent while the BSE Smallcap index clocked a gain of 0.70 per cent.
“Although markets once again hit new highs, it moved sideways intra-day in lacklustre trades before eking out modest gains on the back of selective buying in metals, capital goods and telecom stocks. However, weakness in banking, oil & gas and auto stocks tempered the gains,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Where are markets headed?
‘’The ECB kept the rate status quo and will wait for further evidence confirming inflation control. The release of US payroll data and upcoming inflation data from the US, China, and India next week will provide investors with insights into the global macroeconomic outlook. We expect volatility to persist in the upcoming week due to high valuations and forthcoming policy rate guidance releases,” said Vinod Nair, Head of Research, Geojit Financial Services.
Technical View: Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd expects Nifty to move towards 22,700-22,750 in the next few days with the ongoing rally focused towards large caps.
Ajit Mishra, SVP- Technical Research, Religare Broking Ltd said, ‘’Markets have been gradually inching higher with every passing week, thanks to rotational buying across the key sectors however we are seeing selective participation now.”
‘’Having said that, we expect Nifty to maintain the prevailing tone and gradually inch toward 22,800. On the downside, the 21,900-22,150 zone would offer a cushion in case of any profit taking. Traders should maintain stock-specific trading approach and prefer index majors and large midcaps for long trades,” added Mishra.
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: 09 Mar 2024, 09:59 PM IST
