Smallcaps offering double-digit weekly returns fall to 29 amid subdued market sentiments
Newgen Software Tech was the top gainer from the smallcap pack, offering 27% returns. It was closely followed by Max Estates and Shakti Pumps, both gaining 21% each.
The number of offering double-digit returns fell this week due to a broad-based correction in the domestic market. This was on the back of a cautious Fed, which kept the key rates unchanged, highlighting the concerns around inflation.During the week, only 29 gained in double-digits with Newgen Software Tech being the top gainer from the pack, offering 27% returns. It was closely followed by Max Estates and Shakti Pumps, both gaining 21% each.
About 25 stocks, including Ram Ratna Wires, Sarda Energy, Orient Paper, Likhitha Infrastructure, , Geojit, Kfin Tech have offered returns between 10-20% during the week.
In the midcap segment, only four stocks, including REC, Power Finance Corp, Schaeffler India, have risen in double digits. While REC gained 22%, PFC and Schaeffler India were up over 18% and 13%, respectively.
From the Sensex pack, Mahindra and Mahindra topped the charts with 7% returns, followed by Power Grid at 6.3% and SBI at nearly 4%.
During the week, marginally better-than-anticipated fourth earnings and a correction in oil prices led to a positive start to the domestic market. However, the uptick was short-lived following mixed global trends.
Analysts said foreign investors continued to remain net sellers in the market, which has impacted the performance of large cap stocks.
What should investors do?
With the ongoing fourth quarter earnings season, stock specific action is likely to continue. Some of the earnings to watch out include that of Godrej Consumer, Lupin, JSW Energy, Dr Reddy's, PB Fintech, Voltas, L&T, Tata Power, Canara Bank, TVS Motor, Asian Paints, BPCL, HPCL, Tata Motors, Cipla, ABB India, among others.
"The ongoing results season will be a key detrimental factor for investors to align their portfolios," said Vinod Nair, Head of Research, Geojit Financial Services.
The market will also remain vigilant about the BoE policy and GDP data from the EuroZone. Analysts also expect a degree of consolidation due to expensive valuations and any election-led jitters.
"We expect the market to consolidate in a broader range and base to gradually shift higher," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.
Technically, the index witnessed profit booking amid increasing volatility and nervousness at higher zones.
Nifty is showing signs of near-term bearishness as it forms a double-top pattern on the daily chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise approach in the market, according to Kunal Shah of LKP Securities.
Confirmation of the double top pattern would require follow-up selling in the upcoming week. Immediate resistance is noted at the 22,600-22,700 zone, where aggressive call writing has been observed in the options market, Shah noted.
(With data 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)
Source: Stocks-Markets-Economic Times
