Monday, March 4, 2024
Monday, March 4, 2024
HomeBusinessOver 25 Small Caps Gain 20-65% as Index Hits All-Time High of...

Over 25 Small Caps Gain 20-65% as Index Hits All-Time High of 46,821

On the stock-specific front, Schneider Electric Infra, UCO Bank, Balaji Telefilms, Parag Milk Foods, Olectra Greentech, Punjab & Sind Bank, Triveni Turbine, Bajaj Hindusthan Sugar Limited, EIH Ltd, SMC Global, ASM Technologies, Kalyani Steels, Kriti Industries, Kirloskar Oil, Indiabulls Real Estate Ltd and others are among the small-cap companies that saw a double-digit rise in their share prices last week.

Weekly market impression

Markets traded lacklusterly in a range and closed with a marginal cut, continuing the prevailing market consolidation phase. After a quiet start, Nifty 50 swung both ways, following mixed trends in heavyweights across sectors.

Also read: Dividend stocks: Nestle India, Power Grid, ONGC, among others to trade ex-dividend next week; consult complete list

Sectoral moves kept traders busy, with pharmaceuticals, energy and real estate performing well, while pressure continued on the consumer goods and banking sectors. Broader indices also traded mixed with midcaps managing to gain almost a per cent, according to market experts.

“When valuations are high, bears will use any negative news to drag the market down,” said Dr VK Vijayakumar, chief investment strategist at Geojit Financial Services, referring to the Bank of India governor’s “slightly hawkish comments.” the Reserve Bank of India (RBI). Thursday.

The RBI kept interest rates unchanged on Thursday, as expected, and signaled that rate cuts may not be imminent. The BSE benchmark index fell 723.57 points or one per cent to settle at 71,428.43 on Thursday amid uncertainty over the timing of the interest rate cut after the RBI’s policy decision. The Nifty fell 212.55 points or 0.97 per cent to 21,717.95.

On the weekly front, the BSE benchmark index was down 490.14 points or 0.67 per cent, and the Nifty fell 71.3 points or 0.32 per cent. Broader, more domestically focused small-cap stocks closed flat, while mid-cap stocks added 0.85 per cent for the week. Both indices recorded their worst session in more than two weeks on Friday.

Among individual stocks, fintech major Paytm fell the most over the week, down 45 per cent since January 31, when the RBI ordered its banking arm to shut down operations. Financial sector stocks lost 1.13 percent during the week. They have fallen about six per cent since January 16, when top private lender HDFC Bank posted disappointing quarterly results.

Consumer stocks fell 2.27 percent for the week, led by a 5.7 percent drop in the ICT heavyweight, which posted its worst week since October 2021. However, technology stocks Information technology (IT) rose one percent over the week after resilient services and labor market data raised hopes of a soft landing for the U.S. economy, a key source of revenue for the sector.

Oil and gas stocks rose about four per cent during the week, helped by sustained post-results rally in oil marketing companies such as Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporatio Ltd (HPCL).

Foreign institutional investors (FIIs) were buyers in three of the five sessions last week with a total disinvestment of $5,871.45 crore, while domestic institutional investors also bought over three sessions with a total investment of $5,325.76 crore, according to stock exchange data.

”Mid- and small-cap companies had seen strong rallies in recent months, making valuations a bit stretched. However, buying was seen in large caps, where there is still some comfort,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.

more to come

Disclaimer: The opinions and recommendations above are those of individual analysts, experts and brokerage firms, not those of Mint. We advise investors to consult certified experts before making any investment decisions.

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Posted: Feb 10, 2024, 09:23 pm IST

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