Business
Broader indices underperform, but 38 smallcap stocks deliver double digit returns
Broader indices underperform, but 38 smallcap stocks deliver double digit returns
About this update from Ifci Limited
Broader indices underperformed the main ones in the volatile week ended April 19 due to geopolitical worries, rising crude prices, and uncertainty over the US Fed's rate cut timing. However, 38 smallcap stocks saw an uptick as they jumped between 10 and 35 percent.In the week gone by, the Nifty50 index shed 372.4 points (1.65 percent) to end at 22,147, while the BSE Sensex fell 1,156.57 points (1.55 percent) to close at 73,088.33.In the broader market, the BSE SmallCap, MidCap and LargeCap indices shed 1, 2.2, and 1.7 percent, respectively.All sectoral indices ended in the red. Nifty Information Technology index shed 4.7 percent, Nifty PSU Bank fell 3.7 percent, Nifty Realty Index dropped 2.7 percent, and Nifty Pharma index slid 2 percent.Foreign institutional investors (FIIs) sold equities worth Rs 11,867.03 crore, while Domestic Institutional Investors (DIIs) bought equities worth Rs 9,036.33 crore."Indian markets staged a recovery as the week drew to a close, fuelled by strong performance in largecaps amid global uncertainties. Optimism prevailed, with hopes of limited prospects of escalation in Iran-Israel tensions. However, the domestic market failed to offset the losses sustained through the week. Globally, caution persisted as the situation in the Middle East remains fragile. Further, the potential delay of a US rate cut due to higher-than-expected inflation, robust retail sales, and elevated oil prices subdued sentiments. This was evident through notable upticks in the dollar index, US bond yields, and the price of yellow metal," said Vinod Nair, Head of Research, Geojit Financial Services."Mid and smallcap stocks also corrected, highlighting concerns over valuations. Muted Q4 earnings expectations and weak IT results could extend the consolidation. FIIs continued to remain risk-averse, a trend seen since last week. Largecaps could offer solace for investors, given earnings stability."GDP, PMI, and jobless claims data from the US next week will provide further insights into the Fed's policy. Additionally, Indian PMI data and Q4 results are anticipated to shape market trends in the coming week," he added.Sun Pharma Advanced Research Company, TruCap Finance, Gensol Engineering, Inox Green Energy Services, COFORGE, Genesys International Corporation, IFCI, Jay Bharat Maruti, and Visaka Industries were among the major smallcap losers.On the other hand,...