58 smallcap stocks log double-digit weekly gains in a mixed market

About 57 smallcap stocks delivered double-digit weekly returns with four of them offering over 25% returns. Jaiprakash Associates was the top gainer in the pack with nearly 40% return, followed by SEPC Ltd (35.1%), Greenlam Industries (29.6%), and Apollo Micro Systems (25%).

Indian equity markets started positively, but weak sentiments persist after the central bank's decision to maintain the key rates unchanged, as a caution towards inflation, while positive macro news buoyed the market. 75 smallcap stocks delivered double-digit gains with the top gainers being Greenlam Industries, EKI Energy Services, Suzlon Energy, and Indian Hume Pipe Company. Midcap segments, only Torrent Power, Hindustan Aeronautics, and Ajanta Pharma traded in the double digits. L&T was the top performer in the Sensex market. The release of May's domestic inflation data and the outcomes of the FOMC meeting is expected to play a role in shaping the market trend.

Only eight stocks in the smallcap space delivered double-digit returns. Black Box was the top gainer in the week with 20.64% returns.

On Monday, Sensex surged by 114.92 points or 0.19% to close at 59,106.44. Nifty 50 jumped by 38.30 points or 0.22% to end at 17,398.05. Smallcap stocks were top performers. Oil and gas stocks are under pressure, while auto stocks rallied robustly post the monthly sales figures.

As Sensex traded in a narrow range last week, 20 smallcap stocks have given over 20% returns. The S&P BSE Smallcap index surpassed the benchmark with a 2.4% gain. Nucleus Software Exports reported its best-ever revenue of Indian rupees (INR) 635 crore for FY23 which led it to achieve a whopping 41% increase last week, while Force Motors and Brightcom Group followed with over 37% and 27% gains respectively. Money managers are bullish on the broader market and expect the uptrend to continue in the small-cap stocks despite possible consolidation in benchmark indices.

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.

After consecutive gains, equity markets closed in the negative zone due to cautiousness in global markets. Despite this, Sensex reached an all-time high level. Thirty-seven small-cap stocks delivered double-digit returns during the week, and two mid-cap stocks delivered double-digit returns. Almost all indices ended in the red, with metal and commodity stocks bleeding the most. Analysts predict that the market will consolidate in the near term, and investors should use corrections to buy. Technically, there is weakness in the Nifty index, but new highs are expected to come in time.

The easing of US bond yields and crude oil prices contributed to the recovery in the market last month. Bond yields eased following encouraging inflation data in the US, which strengthened the view that the interest rate hike cycle is closer to the peak.

As many as 60 smallcap stocks gave double-digit weekly returns in a buoyant equity market, with Rail Vikas Nigam leading the smallcap category with 38% returns. Benchmark indices ended the week high, with both Sensex and Nifty gaining over 2% in the past five days, supported by strong Q4 results from banking giants. In the BSE500 space, 22 companies delivered double-digit returns to the investors. Analysts predict the current rally will continue, with the Nifty heading towards 18,500 in May, recommending investors to stick to the strategy of buying on dips.

Several smallcap stocks in India have offered double-digit weekly returns amidst weak global cues. Repro India has offered the highest returns at nearly 45%, followed by Aurionpro Solution and Shakti Pumps. The midcap segment has not witnessed any stock rising in double digits, but Ramco Cements led the segment with 9.66% gains. Despite the lack of decisive direction, the Indian domestic market closed positively. Investors would continue to look for global cues to understand market direction and earnings growth. The market is expected to resume its upward journey, supported by positive global cues.