84 smallcap stocks defy selling pressure, deliver double-digit weekly returns

Equity markets saw some selling during the week, almost coinciding with the news of the downgrade of US sovereign rating by Fitch.

During the week, as many as 84 smallcap stocks delivered double-digit weekly returns with two of them rising over 40%.

Lloyds Engineering was the top gainer in the smallcap pack with nearly 44.54% return, followed by Digispice Technologies (40.04%), MPS (37.8%), and Optiemus Infracom (28.7%).

About 7 stocks, including Sanghi Industries, Jai Balaji Industries, and HCL Infosystems have offered returns over 25% during the week.


In the midcap segment, only three stocks, IRFC, Laurus Labs and IDBI Bank have risen in double digits. While IRFC has gained 28.7%, Laurus and IDBI Bank were up 16% and 10%, respectively.

Among the Sensex pack, Tech Mahindra topped the charts with nearly 8% returns, followed by NTPC at 3.76% and HCL Tech at 3.72%.

Despite negative global cues, the domestic market recovered towards the end, gaining support from positive domestic earnings led by IT and pharma stocks.

What should investors do?
In the coming week, the economic data due from US, Europe and China, and the policy announcements would determine the trajectory of markets, according to analysts.

“India’s manufacturing activity remained robust, although it marginally moderated. On the other hand, the domestic service PMI exceeded market expectations. Investors are awaiting the upcoming MPC meeting, where the RBI is expected to maintain its policy rates at 6.5%,” said Vinod Nair, Head of Research at Geojit Financial Services.

Technically, analysts say the sentiment is likely to remain weak as long as the Nifty remains below 19,566.

“A decisive move above 19,566 could take the index towards 19,700-19,750. On the other hand, a failure to move above 19,566 could trigger selling pressure.,” said Rupak De, Senior Technical analyst at LKP Securities.

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



Source link

Leave a comment