52 smallcap stocks offer double-digit returns in volatile market week. What's in store for investors ahead?

As many as 52 smallcap stocks have given double digit returns in what actually was a volatile week for Indian equity markets. Despite the volatility, benchmark indices ended in positive territory with Sensex and Nifty gaining 0.75% each.

From the smallcap pack, Jai Balaji Industries has given the highest returns with a 34% rally, followed by Brightcom Group, which has risen about 27%, and Onward Technologies, whose shares jumped 27%.

Five smallcap stocks, apart from the above three, including Manorama Industries and Neuland Laboratories have delivered over 25% returns to investors last week.

About four stocks in the smallcap space, Stylam Industries (24.99%), Capacit'e Infraprojects (24.73%), Sastasundar Ventures (20.57%)
and Kirloskar Brothers (20%), have offered over 20% returns during the period.

From the BSE500 pack, 14 stocks have given weekly double-digit returns to investors, while in the midcap segment, only Glenmark Pharma has gained in double digits at 11%.

IndusInd Bank was the top gainer in the Sensex pack with 12.56% returns, followed by Tata Motors (8.06%) and Axis Bank (5.30%).



Sector-wise, auto stocks gained the most during the week on better sales numbers across various segments. The S&P auto index surged 4.33%.

"Maruti, M&M, Tata Motors and Eicher Motors, which together form around 55% of Nifty Auto index, contributed the most to driving the Index this week," said Anand James, Chief Market Strategist at Geojit Financial Services.

During the week, the domestic market was influenced by global market trends that revolved around US inflation numbers, which came as a relief to investors.

The consistent inflow of funds from foreign portfolio investors and the weakness of the dollar helped in controlling the downward pressure in the domestic market.

FPIs have remained consistent net buyers throughout the month and have net invested about Rs 14,661 crore in Indian markets so far in May.

What should investors do?
Analysts say strong economic data on the domestic front will have a positive impact on equity markets.

Government data released late Friday showed that India's retail inflation eased to a 19-month low of 4.7% in April, mainly on lower food prices, government data showed on Friday.

"Market has now been consolidating for the last 4 days and is awaiting fresh triggers for the next leg of the rally as the structure of the market remains positive," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.

"Next week, Nifty shall aim for 18500, but visibility past the same for May is clouded by the prospects of mean reversion, with Nifty being 4.5% away from the 50 DMA, an event last seen only in November 2022, post which Nifty corrected from the record peak," said Anand James.


(With data inputs from Ritesh Presswala)

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