Over 45 smallcaps gain between 10-35% as Sensex rises 1% last week
On the stock-specific front, Jubilant Industries, KPI Green Energy, Data Patterns, Wockhardt, Yasho Industries, ASM Technologies, Tata Investment, Skipper, Jai Balaji Industries, Force Motors, Shilpa Medicare, Meghmani Organics, Indo Count, Hindustan Media Ventures, and others are among the smallcaps that logged a double-digit rise in their share prices last week.
Markets’ Weekly Print
Markets remained volatile in the past five days but managed to extend their winning streak for the second consecutive week, ending with a gain of nearly a per cent. After the initial rise, mixed global cues combined with profit taking in select heavyweights capped the momentum. Global Indices surged higher as the positive momentum was largely influenced by the etch rally following Nvidia’s strong earnings report, which also buoyed sentiments in Indian markets.
The domestic benchmark indices, Nifty and Sensex, continued to oscillate in a narrow range till the end and finally settled at 22,212.70 and 73,142.80 respectively. On the sectoral front, the majority ended in the green wherein realty, FMCG and metal were among the top performers. However, the broader indices failed to match the move and ended on a flat note.
The Nifty 50 and BSE Sensex gained 0.78 per cent and one per cent, respectively, for the week, despite falling 0.02 per cent each on Friday. The broader, domestically-focussed small-caps shed 0.12 per cent this week, while mid-caps added 0.30 per cent, both underperforming the benchmarks.
Eight of the 13 major sectors posted weekly gains. Financials and banks added about one per cent each. Consumer stocks advanced 1.53 per cent after dropping 5.5 per cent over the last four weeks, dragged by lacklustre quarterly results.
Realty stocks jumped 4.08 per cent, leading sectoral gains for the week, with DLF climbing 4.16 per cent due to land purchases. IT stocks shed 1.12 per cent for the week, pulled down by the losses in the first three sessions ahead of the minutes from the Federal Reserve’s latest monetary policy meeting.
The energy index snapped a 16-week winning run, dragged by oil marketing companies, including Bharat Petroleum Corp Ltd (BPCL), on concerns over sustainability of refining and marketing margins.
Also Read: FPIs offload ₹424 crore in Indian equities as outflows sharply decline in February: Here’s why
‘’Buying in index heavyweights like Reliance Industries, ITC, and banking giants provided crucial support to the market. RIL even hit a new all-time high at 2995.10 during the week. Moreover, optimistic earnings reports from US chipmaker Nvidia and favourable PMI data from the Indian economy boosted overall market sentiment,” said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.
Foreign institutional investors (FIIs) were sellers for three out of five sessions last week, and the total divestment stood at ₹1,939.4 crore, while domestic institutional investors (DIIs) were buyers for four out of five sessions, with a total investment of ₹3,532.82 crore, according to stock exchange data.
Previous Session
Domestic benchmark equity indices, the Sensex and the Nifty 50 ended Friday’s session flat dragged by selling in selling in information technology (IT), bank, metal, and oil & gas stocks. The benchmark indices started off Friday’s session with minor gains amid positive global cues.
For the fifth consecutive session, the Nifty 50 touched a record high on Friday. Although the Nifty 50 in the early trade was fuelled by a rise in IT and bank stocks amid the global equity rally, it ended flat amid profit booking.
The 30-share BSE Sensex ended flat by 15.44 points lower or 0.02 per cent at 73,142.80 level while the Nifty 50 closed at 22,212.70 level, down 4.75 points or 0.02 per cent. On the broader market front, the Nifty Midcap 100 closed 0.31 per cent higher, and the Nifty SmallCap 100 closed 0.38 per cent higher, both outperforming the benchmark indices.
The Shanghai Composite index added 0.6 per cent while Hong Kong’s Hang Seng was unchanged. Tokyo’s markets were closed for a holiday. Germany’s DAX, the CAC 40 in Paris and FTSE 100 in London rose up to 0.1 per cent.
“The domestic market paused momentarily after reaching another record high earlier in the day, driven by positive signals from global markets. Notably, the capital goods and industrial sectors showed strength, supported by advancements in manufacturing and services,” said Vinod Nair, Head of Research, Geojit Financial Services.
‘’As the earnings season winds down, the market is eagerly awaiting new catalysts however rallying on the pre-election momentum. Concerns linger over rising crude oil prices, surging US bond yields, and stretched valuations, likely prompting continued selling by FIIs,” added Nair.
Where are markets headed?
‘’Looking ahead, as we approach the February month Futures and Options (F&O) expiry alongside the MSCI rebalancing scheduled for Thursday, we anticipate heightened volatility,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Indications are in the favor of prevailing uptrend to continue thus traders should use intermediate dips to add quality stocks. Also, they should maintain a close watch on the global indices; especially the US, and the participation of the banking majors for cues on momentum, according to Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Technical View: Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, ‘’Any dip towards the support zone 22,130 – 22,090 it should be used as a buying opportunity as the overall trend remains positive and this is just a brief pause in the overall up move. In the near term, 22,300 – 22,350 levels on Nifty should act as an immediate hurdle zone while 22,130– 22,090 is the crucial support zone.”
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: 24 Feb 2024, 10:33 PM IST
