75 smallcap stocks offer double-digit returns in a wobbly market week

During the week as many as 75 smallcap stocks delivered double-digit weekly returns with four of them rallying over 25%.

Greenlam Industries was the top gainer in the smallcap pack with nearly 30% return, followed by EKI Energy Services (27.6%), Suzlon Energy (27.4%), and Indian Hume Pipe Company (25.7%).

About 11 stocks, including CarTrade Tech, HBL Power Systems, Mazagon Dock, Heubach Colorants, PTC Industries and Tata Teleservices among others offered returns between 20-25% during the week.

In the midcap segment, only three stocks, Torrent Power, Hindustan Aeronautics and Ajanta Pharma rose in double digits. While Torrent Power gained 20.7%, HAL and Ajanta Pharma jumped 18% and 10%, respectively.

In the Sensex pack, L&T topped the charts with 6% returns, followed by Axis Bank at 5.2% and Tata Motors at 4.9%.

During the start of the week, a slew of positive macro news, such as stronger-than-expected PMI figures, sequential growth in auto sales, and robust expansion in bank credit, kept the markets buoyant. However, as the week went by the cautious commentary from the RBI and profit booking at higher levels hit the benchmark indices.What should investors do?
In the coming week, market participants will keenly await the release of domestic inflation data for May, which is anticipated to show a cooling down from the current level of 4.7%.

“Global cues will also play a significant role in shaping the market trend, with investors closely monitoring the outcomes of the FOMC meeting and the US inflation print,” said Vinod Nair, Head of Research at Geojit Financial Services.

“The positive momentum is expected to continue over the near term. The rate decision and guidance would set the tone for risk assets trading over the near term,” said Joseph Thomas, Head of Research, Emkay Wealth Management.

Technically, analysts say the undertone of Nifty has turned sideways from bullish, where 18,500 in the spot remains the support where maximum open interest has been seen in put data and 18,700 is the new resistance for the Nifty where maximum call writing is been seen.

“A break on either side of the levels, can lead to further trending moves in the index, till then nifty will remain in a consolidation phase,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)