As benchmarks take a breather, 47 smallcap stocks offer double-digit weekly returns

As many as 47 smallcap stocks have offered double-digit weekly returns as equity markets faced resistance in the face of weak global cues.

Among the smallcap pack, Repro India has offered highest returns by some distance at nearly 45%, followed by Aurionpro Solution and Shakti Pumps, which rose 30% and 27%, respectively.

Apart from the above, three other stocks in the smallcap space -- Dev Plastiks Industries (25%), Kokuyo Camlin (24%), and Indo Amines (24%) -- have offered over 20% returns during the week.

About 41 stocks, including Orient Bell, Amber Enterprises, Precision Wires, Kaynes Technology, Globus Spirits, Tilaknagar Industries, Arvind among others have given returns between 10-20% in the said period.


In the midcap segment, no stock has risen in double digits but Ramco Cements was the top gainer during the week at 9.66%. Max Healthcare and Exide Industries followed with 9% and 7% returns, respectively.

In the Sensex pack, IndusInd Bank was among the top gainer for the second consecutive week after rising 3.25%. Tech Mahindra, Infosys and Tata Motors were also leading the charts among the largecaps.

Sectorally, S&P BSE realty index gained the most at 1.28%, followed by IT stocks at 1.16%.

What should investors do?
The domestic market, though experienced a lack of decisive direction, ended the week on a positive note. With the earnings in the last leg, investors would continue to look for global cues for gauging market direction.

According to analysts, Nifty stocks that have reported results so far witnessed earnings growth of 9.7%, falling short of the estimated 10.6%, while the Nifty 500's earnings improved by 11.7% compared to the estimated 8.9%, indicating the outperformance of mid- and smallcaps.

"Despite market fluctuations, FIIs continued to provide support to the domestic market. The lower levels of India's VIX reflect market stability, instilling investor confidence and promoting long-term investments," said Vinod Nair, Head of Research at Geojit Financial services.

Siddhartha Khemka of Motilal Oswal expects the market to resume its upward journey after taking a pause this week, backed by positive global cues, and consistent FII buying.

Technically, Nifty formed a hammer pattern on the daily chart, indicating a potential trend reversal. It found support at the 21EMA, resulting in a smart recovery from Friday's low.

"Positive divergence was observed on the hourly RSI, suggesting a possible shift in momentum. Resistance on the higher end, is seen at 18300, while support is placed at 18050," said Rupak De, Senior Technical analyst at LKP Securities

Jatin Gedia of Sharekhan believes that the Nifty is still in a consolidation mode and the range of consolidation is likely to be 18000–18400.

(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)