These 50 smallcap stocks rose 15-50% as Sensex logs third weekly gain led by IT; do you own?
As many as 50 smallcap stocks logged a double digit rise in their stock prices – in the range of 15-40 per cent last week, as the 30-share BSE Sensex logged its third successive weekly gain, supported by a surge in information technology (IT) stocks on easing global interest rate outlooks with strong US markets.
On the stock-specific front, 45 smallcap stocks logged gains in the range of 15 per cent – 50 per cent last week, outperforming the index. Sharda Motor, RattanIndia Power, Orient Green Power, MSP Steel & Power, 63 Moons Tech, Titagarh Railsystems, Tata Investment, Nesco, Varrox Engineering, Dilip Buildcon, Antony Waste Handling, GE Power India, DB Realty, KPI Green Energy, Jain Irrigation, DCX Systems, IFB Industries, SMC Global, Solar Industries are among the smallcaps that logged a double-digit rise in their share prices last week.
Markets’ Weekly Print
Domestic markets extended their bullish tone for the third successive week and gained over a percent. The beginning was downbeat but the bias changed in the following sessions with a surge in the US markets.
The NSE Nifty 50 index gained 1.58 per cent this week, its best in two months, while the Sensex rose 1.37 per cent. Stocks of IT companies, which earn a significant share of their revenue from the US, climbed 5.07 per cent, their best week in 16 months.
The more domestically-focussed small- and mid-caps hit fresh record highs, and outperformed the benchmarks on the week, aided by retail inflows.
The rise follows softer-than-expected US inflation data on October 14, which bolstered expectations that the US Federal Reserve will not hike rates and may start cutting rates in May 2024.
US Treasury yields also fell after the inflation data, while foreign investors snapped a 15-session selling streak in the week. The fall in oil prices is also a positive for net importers like India, analysts said. Brent crude futures hit four-month lows and were set to decline for the fourth straight week. The Nifty oil & gas index gained 1.40 per cent, rising for the third week in a row.
Shares of bank and NBFC firms fell sharply after the Reserve Bank of India (RBI) tightened norms for consumer credit as it asked them to assign a higher risk weight for unsecured personal loans, a move aimed at making the lenders more cautious about such advances.
Previous Session
On Friday, frontline indices indices ended in red over weak cues from the Asian markets and witnessed extremely volatile trading trends. However, the broader market outperformed the benchmark indices in today’s session.
The 30-share BSE Sensex ended lower by 187.75 points or 0.28 per cent at 65,794.73 level while the Nifty 50 closed at 19,731.80 level, down 33.40 points or 0.17 per cent. The broader market closed inched higher than the benchmark indices on Friday’s session, the Nifty Midcap 100 closed 0.20 per cent higher and Nifty Smallcap ended flat or 0.09 per cent higher.
Banks, financial services, public sector banks and private banks lost between 0.9 per cent and 2.5 per cent, amid concerns over the sector’s loan growth and profitability after the RBI tightened rules for personal loans and credit cards.
MORE TO COME
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Updated: 18 Nov 2023, 09:31 PM IST