Bulls had gala time on Dalal Street as 46 smallcap stocks give double-digit weekly returns

The over $1.2 billion of inflows from foreign institutional investors in 10 sessions helped the market regain strength.

The bulls party was more prominent in the broader market, as 46 stocks gave double-digit positive returns in the midcap and smallcap segments last week.

Vinyl Chemicals was the top gainer, clocking nearly 42% returns last week. The stock also scaled an over three-month high of Rs 584.90. Many realty stocks made to the outperformers’ list. Shares of Prestige Estates Projects, DLF, Godrej Properties, and DB Realty gained 7-18%.

For the third consecutive time, benchmark Nifty 50 and Sensex clocked weekly gains. The Nifty 50 and Sensex ended flat on Thursday at 17828 points and 60431 points, respectively. Stock market was closed on Friday for Baba Ambedkar Jayanti.

The correction in the recent months has turned valuations of stocks in the midcap and smallcap segment attractive.

Data released by the Association of Mutual Funds in India (AMFI) last week showed that smallcap and midcap schemes garnered Rs 24 billion and Rs 21 billion, respectively in the month of March, which is 23% of the total flows received in equity schemes by mutual funds.

Both these categories have been seeing the most steady inflows versus other categories for the last one and a half years.

“Despite a volatile month with markets being subdued, the net positive flows is a sign of increasing maturity of investors to continue their allocations in equity mutual funds,” said Akhil Chaturvedi, chief business officer, Motilal Oswal AMC.

While bulls were on a firm footing, bears too, had their share of part on Dalal Street. In the smallcap segment, 217 stocks gave negative weekly returns, with 8 of them clocking double-digit losses.

The worst hit was Brightcom Group, as the stock slumped 17% after the Securities and Exchange Board of India (SEBI) issued a showcause notice-cum-interim order against the company and its directors, alleging major fraud in the financial statements.

(Data inputs from Ritesh Presswala)

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