As many as 45 smallcap stocks saw double-digit price increases ranging from 15% to 40% last week, as the 30-share BSE Sensex posted its second consecutive weekly gain, aided by declining US bond yields and lower crude oil prices following the US Federal Reserve's rate pause decision.
On a stock-by-stock basis, 45 smallcap stocks gained 15% to 40% last week, surpassing the index. Among the smallcaps that saw a double-digit increase in share prices last week were Neuland Laboratories, Suzlon Energy, Jaiprakash Power, SVP Global, Den Networks, Orient Green Power, Arvind Fashions, Welspun Enterprises, Dilip Buildcon, JK Lakshmi Cement, Sigachi Industries, Force Motors, Arihant Super, and GMDC.
Markets' Weekly Print
Markets started the week on a positive note, although the benchmarks opened with an upside gap, but weak global cues restricted the rise afterward. Midweek performance was rangebound, but the Nifty 50 and Sensex settled closer to the week's highs on the closing day, at 19,425.30 and 64,904.60, respectively.
On a cumulative basis, the more domestically focused small- and mid-caps gained 3.09 percent and 2.89 percent, respectively, achieving their best week in two months amid persistent retail inflows. On a weekly basis, the BSE benchmark increased 540.9 points, or 0.84 percent, while the Nifty rose 194.75 points, or 1%.
The Nifty smallcap index reached a new high this week, rising more than 3%, propelled by a record level of Systematic Investment Plans (SIP) of roughly 17,000 crore every month.
Pharma stocks gained 4.26 percent in a week, helped by a post-earnings surge in important constituents such as Lupin and Aurobindo Pharma. IT businesses, which generate a substantial portion of their revenue in the US, declined 0.26 percent after Fed Chair Jerome Powell stated that the US central bank was not sure that interest rates were high enough to control inflation.
Oil and gas, the third-heaviest sector in the Nifty 50, rose 2.53% for the week as crude oil prices fell to approximately $80 per barrel. Lower oil prices benefit both importers of the commodity, such as India, and its oil marketing businesses.
Despite a two-day drop, markets finished the week higher. Fed Chair Powell also warned that interest rates could climb higher, affecting stocks and bonds. The rupee fell to a new low, while the year bond yield increased.
Previous Session
Despite weak global indications, the Sensex and Nifty 50 closed higher on Friday, boosted by fag-end buying in select heavyweights such as HDFC Bank and ITC. Concerns about interest rate hikes remained after Fed Chair Jerome Powell made a hawkish remark on Thursday, while the Israel-Hamas conflict raged on.
The Nifty 50 opened at 19,351.85, up 30 points, or 0.15 percent, from the previous close of 19,395.30, and reached intraday highs and lows of 19,451.30 and 19,329.45, before closing at 19,425.35, up 30 points, or 0.15 percent.
The 30-share Sensex closed 72 points higher, or 0.11 percent higher, at 64,904.68. Small and midcap stocks outpaced the benchmarks. The BSE Midcap index increased by 0.33 percent, while the Smallcap index increased by 0.38 percent.
"Selective buying helped markets finish marginally higher, despite the fact that other Asian and European counterparts were struggling due to selling pressure." The outflow of foreign funds from the local market has been a source of concern... Furthermore, the unpredictable US government yields have prompted offshore investors to flee emerging markets in recent months,'' said Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.
Where are markets headed?
The BSE Sensex increased by 5,073.02 points, or 8.47 percent, during Samvat 2079, while the Nifty increased by 1,694.6 points, or 9.55 percent. During this time, the market capitalization of BSE-listed companies increased by more than 43.81 lakh crore to 3,20,29,232.24 crore.
Analysts predict that stocks would continue to outperform in Samvat 2080, owing to solid profitability and an optimistic economic outlook.
''Despite various worldwide issues, Nifty ended the Samvat 2079 on a high note. ''During this period, the Nifty gained 9.4 percent and set a new life high by exceeding the 20k mark for the first time,'' said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
On November 12, stock exchanges will have a one-hour special muhurat trading session in honor of Diwali. Between 6 and 7.15 p.m., a symbolic trading session will be held. A 15-minute pre-market session is included.
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Money Poise
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