Over 40 smallcaps gain 10-30% as Sensex hits 11-week high; do you own?

On the stock-specific front, Asian Energy Services, 63 Moons Tech, India Cements, Tanfac Industries, HBL Power, Shalimar Paints, Poonawalla Fincorp, Dixon Technologies, Reliance Infra, MTNL, Bharat Dynamics, Chennai Petroleums, Finolex Cables, NBCC (India), Carysil, and others are among the smallcaps that logged a double-digit rise in their share prices last week.

Markets’ Weekly Print

Domestic equity benchmark Nifty 50 hit fresh record highs logged its best week in five months as strong macroeconomic data, continuous foreign fund inflows added to optimism over the global interest rate outlook. The midcap index also ended at a record high for the 15th consecutive session. Out of the 50 Nifty stocks, 31 showed gains since the last record high on September 15, 2023.

Sensex hit its 11-week high, closing at the highest closing level since September 18, and logged its fifth straight weekly gain, along with Nifty 50. The blue-chips Nifty 50 and BSE Sensex gained 2.39 per cent or 473.2 points and 2.29 per cent or 1,511.15 points, respectively, led by a rise in energy stocks.

Also Read: Axis Securities initiates coverage on smallcap stock with ‘buy’ rating, sees 40% upside; do you own?

Favorable global cues triggered an upbeat start, which further strengthened with rotational participation from the index majors, especially from the banking and financial pack. All 13 major sectors logged gains for the week, while the more domestically-focused small- and mid-caps extended their outperformance over the blue-chips. 

Oil & Gas rose 4.38 per cent, and was the top weekly sectoral gainer, aided by a drop in crude oil prices as production cuts agreed by the Organisation of Petroleum Exporting Countries and its allies (OPEC+) were below market expectations.

Vinod Nair, Head of Research at Geojit Financial Services, said “The market soared to new heights this week, decisively breaching the key resistance level and closing strongly above 20,000 levels. Global markets witnessed a bullish trend, buoyed by expectations that the European Central Bank has concluded its rate-hiking cycle amid a backdrop of easing inflation.”

‘’The broader market outperformed, with mid and small caps displaying resilience and no signs of fatigue. Investors remain optimistic about government spending and heightened consumption, driven by easing inflation, propelling growth in H2FY24,” added Nair.

The Nifty Smallcap 100 index jumped 12 per cent in November while the benchmark Nifty 50 rose 5.5 per cent. On the other hand, the Nifty Midcap 100 index rose 10.4 per cent in November. In 2023, the Nifty is up 12 per cent, the Nifty Midcap is up 38 per cent, and the Nifty Small Cap is up 46 per cent.
 

Previous Session

On Friday, the domestic equity market achieved record-high levels on December 2023’s first session on all-round buying after India’s July-September quarter gross domestic product (GDP) data exceeded expectations.

The benchmark Nifty 50 hitting its fresh record high of 20,291.55 -up 158.4 points or 0.78 per cent, during the intraday session. Nifty 50 finally closed 135 points, or 0.67 per cent, higher at 20,267.90.

Sensex ended the day at 67,481.19, up 493 points, or 0.74 per cent. Sensex remained 446 points away-less than 1 per cent shy, from its all-time high of 67,927.23 which it hit on September 15 this year.

Mid and smallcap indices also hit their fresh record highs during the session. The Nifty Midcap 100 index hit its record high of 43,469.30 while the Nifty Smallcap 100 index scaled its fresh peak of 14,305.10.

The Nifty Midcap 100 index closed 1.10 per cent higher at 43,382.40 and the Nifty Smallcap 100 index closed 0.48 per cent higher at 14,239.30. BSE Midcap index closed 0.96 per cent higher at 34,586.76 after hitting its fresh record high of 34,631.35 during the day. The BSE Smallcap index ended with a gain of 0.48 per cent at 40,565.96 after hitting its record high of 40,718.81 during the session.

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Updated: 02 Dec 2023, 08:39 PM IST