Over 45 smallcaps rise 10-30% as Sensex crosses 71,000-mark; do you own?
More than 45 smallcap stocks logged a double digit rise in their stock prices – in the range of 10-30 per cent last week, as the 30-share BSE Sensex reported it longest weekly winning streak in six years, as it rallied to cross its lifetime high mark of 71,000 on the back of strong global cues.
On the stock-specific front, Mangalam Cement, TVS Holdings, INOX Green Energy, Hudco, HBL Power, Mastek, KPI Green Energy, RBL Bank, Equitas Small Finance Bank, Coforge, Aether Industries, and others are among the smallcaps that logged a double-digit rise in their share prices last week.
Markets’ Weekly Print
The NSE Nifty 50 index and BSE Sensex rose about 2.3 per cent in the week, extending gains for the seventh consecutive week, marking their longest winning run since January 2018. Specifically, the BSE benchmark jumped 1,658.15 points or 2.37 per cent on the week, while the Nifty climbed 487.25 points or 2.32 per cent.
Global cues triggered foreign capital inflows into Indian markets after the US Federal Reserve signalled the end of its tightening cycle and raised expectations of a rate cut in March 2024.
The surge in domestic equities closely follows Fed Chair Jerome Powell’s acknowledgment of the risks of delaying rate cuts on Wednesday, bolstering expectations of a 25 basis points (bps) rate cut by March 2024 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 last week.
The high weightage information technology (IT) index gained about 2 per cent and was among the top sectoral gainers. IT companies, drawing a significant share of their revenue from the US, jumped 7.16 per cent this week, logging their best week in 26 months. The metal index climbed 5 per cent, led by an increase in global metal prices as the US dollar came under pressure following the Fed’s commentary on future rate trajectory.
Vinod Nair, Head of Research at Geojit Financial Services said, ‘’The market surged to new highs, buoyed by positive indicators from both domestic and global fronts. Robust domestic industrial production and manufacturing PMI, coupled with the RBI’s positive remarks on India’s GDP forecast, contributed to the bullish trend.
Investors expressed confidence that clouds over US economic growth would dissipate in H2CY24, anticipating a soft landing facilitated by normalization in monetary policy. The IT sector rallied 7.6 per cent this week in expectation of a rise in demand from the US, optimism about AI-based opportunities.”
MORE TO COME
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Published: 16 Dec 2023, 08:57 PM IST
