27 smallcap stocks gave double-digit weekly returns in a muted market, rose up to 26%

Sensex and Nifty declined on Friday, weighed down by index heavyweights Reliance Industries, Hindustan Unilever, and Infosys amid concerns over the global economic slowdown.

However, indices clocked second consecutive weekly gains, even though the returns were capped on the uncertain global economic outlook and stock-specific action.

BSE Sensex advanced by 360 points, while Nifty gained 71 points on a weekly basis. However, the BSE SmallCap Index shed over 1% during the same period.

"Subdued Q3 results, soft Budget expectations, a slowing economy, FII selling, and concerns over global interest rate hikes defined the market in the past week," said Vinod Nair, Head of Research, Geojit Financial Services.

In a weak market, as many as 28 small-cap stocks, including SEPC, Lloyds, and many others, delivered double-digit weekly returns, some of them rising up to 26%. Shares of SPEC and Goodluck India rallied over 25% in the same period.

On Friday, SPEC shares closed 2.65% higher at Rs 58, while Goodluck India's stock was down about 0.31% at Rs 486.80.

Around 25 stocks in the smallcap category, including KBC Global, Atul Auto, and Just Dial rallied between 10-20%.

Shares of KBC Global and Atul Auto have risen just over 19%, and Jayant Agro-Organics and Xelpmoc Design And Tech delivered 18.34% and 17.66% returns, respectively.

Swan Energy (10.95%), Onward Technologies (10.73%), Agro Tech Foods (10.62%), Ashapura Minechem (10.54%), Usha Martin (10.44%), and a few other companies have given returns of just over 10%.
Analysts expect the second phase of quarterly earnings and global markets to determine the market trends. "Although we started the third quarter on a shaky note, the latest set of financial announcements from IT and banking blue chips are encouraging," said Vinod Nair.

"While the probability of the Fed hiking rates further to slay the demon of inflation is quite high, the consequences of the rate action over a period of time translating itself into an economic slowdown is occupying the minds of the investors," said Joseph Thomas, Head of Research, Emkay Global Financial Services.

(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)

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