These 27 smallcap stocks give double-digit returns in a volatile market, rising up to 46%

As many as 27 smallcap stocks delivered double-digit returns to investors in the volatile market this week. The benchmark indices swung between gains and losses throughout the week, taking cues from the Union Budget and US Fed meet. Besides, a sharp sell-off in Adani Group stocks further added to the choppiness.

However, sustained recovery in select index majors, especially from the banking and financial pack, helped the index to end in the green. Nifty and Sensex settled at 17,854 and 60,841 respectively.

Manaksia was the top performer among the smallcap stocks in the week gone by, offering 46% returns. The stock closed 2.83% lower at Rs 134 apiece on Friday.

Three stocks including Apar Industries and Data Patterns (India) have delivered close to or above 25% returns in this week. While Apar Industries has rallied 28.64% to settle at Rs 1,932, Data Patterns has risen 24.60% for the said week.

Meanwhile, five stocks in the smallcap pack have given over 15% returns. Ratnamani Metals, Automotive Axles, Optiemus Infracom, GNA Axles and Sterling Tools have offered 17.80%, 16.67%, 16.03%, 15.90% and 15.41% returns respectively.

A special dividend announcement of Rs 67 per share by TV Today Network triggered a rally in stock by up to 14.30%. In the intraday deals on Friday, the stock has risen over 15%. The company has fixed February 13 as the record date for the same and the dividend will be paid to beneficial shareholders on the same date.

Further, as many as 18 stocks including Kabra Extrusiontechnik (13.54%), GTL Infrastructure (12.64%), Firstsource Solutions (12.38%), Roto Pumps (11.84%), Jindal Saw (11.72%), KPIT Technologies (11.18%) and others have given over 10% returns to investors.

Analysts expect a number of events including the key RBI meeting will keep the markets volatile next week and investors are told to be prudent in their investing picks.

"On the index front, sustainability above 17,900 in Nifty would further subside the pressure and help the index inch towards 18,200 levels. In case of a decline, 17,550 is critical to hold else the tone would again turn bearish," said Ajit Mishra, VP - Technical Research, Religare Broking.

"Meanwhile, focus on sectors like IT and FMCG that are showing resilience and traders can also selectively look for buying opportunities in the auto and banking space. At the same time, energy, pharma and realty may continue to underperform so plan the positions accordingly," Mishra said.

(With 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)