On a stock-by-stock basis, 45 smallcap stocks gained 15% to 40% last week, surpassing the index. Among the smallcaps that saw a double-digit increase in share prices last week were Neuland Laboratories, Suzlon Energy, Jaiprakash Power, SVP Global, Den Networks, Orient Green Power, Arvind Fashions, Welspun Enterprises, Dilip Buildcon, JK Lakshmi Cement, Sigachi Industries, Force Motors, Arihant Super, and GMDC.

Markets’ Weekly Print

Markets started the week on a positive note, although the benchmarks opened with an upside gap, but weak global cues restricted the rise afterward. Midweek performance was rangebound, but the Nifty 50 and Sensex settled closer to the week’s highs on the closing day, at 19,425.30 and 64,904.60, respectively.

On a cumulative basis, the more domestically focused small- and mid-caps gained 3.09 percent and 2.89 percent, respectively, achieving their best week in two months amid persistent retail inflows. On a weekly basis, the BSE benchmark increased 540.9 points, or 0.84 percent, while the Nifty rose 194.75 points, or 1%.

The Nifty smallcap index reached a new high this week, rising more than 3%, propelled by a record level of Systematic Investment Plans (SIP) of roughly 17,000 crore every month.

Pharma stocks gained 4.26 percent in a week, helped by a post-earnings surge in important constituents such as Lupin and Aurobindo Pharma. IT businesses, which generate a substantial portion of their revenue in the US, declined 0.26 percent after Fed Chair Jerome Powell stated that the US central bank was not sure that interest rates were high enough to control inflation.

Oil and gas, the third-heaviest sector in the Nifty 50, rose 2.53% for the week as crude oil prices fell to approximately $80 per barrel. Lower oil prices benefit both importers of the commodity, such as India, and its oil marketing businesses.

Despite a two-day drop, markets finished the week higher. Fed Chair Powell also warned that interest rates could climb higher, affecting stocks and bonds. The rupee fell to a new low, while the year bond yield increased.

Previous Session

Despite weak global indications, the Sensex and Nifty 50 closed higher on Friday, boosted by fag-end buying in select heavyweights such as HDFC Bank and ITC. Concerns about interest rate hikes remained after Fed Chair Jerome Powell made a hawkish remark on Thursday, while the Israel-Hamas conflict raged on.

The Nifty 50 opened at 19,351.85, up 30 points, or 0.15 percent, from the previous close of 19,395.30, and reached intraday highs and lows of 19,451.30 and 19,329.45, before closing at 19,425.35, up 30 points, or 0.15 percent.

The 30-share Sensex closed 72 points higher, or 0.11 percent higher, at 64,904.68. Small and midcap stocks outpaced the benchmarks. The BSE Midcap index increased by 0.33 percent, while the Smallcap index increased by 0.38 percent.

“Selective buying helped markets finish marginally higher, despite the fact that other Asian and European counterparts were struggling due to selling pressure.” The outflow of foreign funds from the local market has been a source of concern… Furthermore, the unpredictable US government yields have prompted offshore investors to flee emerging markets in recent months,” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.

Where are markets headed?

The BSE Sensex increased by 5,073.02 points, or 8.47 percent, during Samvat 2079, while the Nifty increased by 1,694.6 points, or 9.55 percent. During this time, the market capitalization of BSE-listed companies increased by more than 43.81 lakh crore to 3,20,29,232.24 crore.

Analysts predict that stocks would continue to outperform in Samvat 2080, owing to solid profitability and an optimistic economic outlook.

”Despite various worldwide issues, Nifty ended the Samvat 2079 on a high note. ”During this period, the Nifty gained 9.4 percent and set a new life high by exceeding the 20k mark for the first time,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Also read :- Equity mutual fund inflows surge to ₹19,932 crore in October, SIP contributions at record-high: AMFI data

On November 12, stock exchanges will have a one-hour special muhurat trading session in honor of Diwali. Between 6 and 7.15 p.m., a symbolic trading session will be held. A 15-minute pre-market session is included.

Disclaimer: The following opinions and recommendations are those of individual analysts or brokerage firms, not Mint. Before making any financial decisions, we recommend that investors consult with qualified specialists.

The post These 45 smallcap stocks gained 15-40% as Sensex logs second weekly gain led by global cues; do you own? appeared first on Republic Aeon.

The increase in capital inflow into small-cap funds from ₹2,678 crore in September to ₹4,495 crore in October, according to the data, reflected investors’ growing interest in smaller companies. In addition, for the first time in its history, the category’s average assets under management (AAUM) surpassed the 2 lakh crore mark.

Notably, total SIP contributions reached an all-time peak of 16,927.86 crore in October, with regard to Systematic Investment Plans (SIP). In October, there were a record-breaking 7,30,02,604 SIP accounts, up from 7,12,93,738 documented in September.

Compared to September, the SIP AUM for October was 8,59,923.86 crore, down from 8,70,363.38cro. October saw the highest net addition of SIPs to date, totaling 17,08,866. Based on the available data, there were 34,66,354 newly registered SIPs in October. Analysts observed that the increased structure and proportion of inflows attributed to SIPs (as opposed to one-time investments) will provide market support.

October was the worst month so far in 2023 for the benchmark Nifty 50, which collapsed by roughly 3 percent. Investors are advised to exercise prudence when considering an increase in small-cap allocations, analysts advise, in light of the recent uptrend and market volatility.

October witnessed 724 crore in inflows into large-cap funds, following six months of outflows; this reflects renewed investor confidence in established companies. In October, investments in mid-cap funds increased significantly, from ₹2,001 crore the previous month to ₹2,409 crore in inflows.

The equity markets maintained a risk-averse sentiment throughout the month of October, as evidenced by the index’s decline below 19,000 levels. Motilal Oswal’s chief business officer, Akhil Chaturvedi, remarked, “Equity mutual funds maintained their resilience despite this decline, recording a substantial net inflow.”

The value of investments in hybrid funds during the month of October was 9,907 crore. Although liquid funds continued to experience outflows, the magnitude of those outflows decreased in October from ₧74,177 crore in September to ₹32,964 crore.

Following withdrawals of funds in the preceding two months, debt-oriented schemes experienced a net inflow of ₹42,634 crore in October. This was primarily attributable to increased flows in the liquid fund category.

“Aligned with multi-asset funds and arbitrage funds, hybrid funds continued to receive robust net inflows.” This prevailing tendency is indicative of the market’s risk-averse disposition, wherein investors prioritize capital preservation over investment diversification. As stated by Chaturvedi, “domestic flows remain structural in nature.”

In contrast to September, when liquid funds experienced a net outflow of ₹74,177 crore, the month under review witnessed the greatest net inflow of ₹32,964 crore. Net inflows of ₹2,000 crore were attributable to investors’ favourable sentiment towards the gilt fund category throughout the month.

In October, a grand total of fourteen open-ended initiatives were introduced, each with its own unique contribution of 3,638 crore. Furthermore, in October, the net inflows and outflows of gold exchange traded funds (ETFs) increased from ₇175 crore in September to ₹841 crore.

Also read :- Gold vs silver: Which is better for Diwali 2023 Muhurat trading — explained

“Notwithstanding the zenith of interest rates, there is a discernible upswing in money market investments.” There is notable growth in investor contributions to small-cap funds and gilt funds, both of which serve as indicators of robust confidence. According to NS Venkatesh, CEO of AMFI, the significant recovery observed in the large-cap category can be attributed to the broader recovery of the market.

Systematic investment plans are resilient, as evidenced by the consistent month-over-month growth of SIP figures. As a result of the unrealized potential in these sectors, we are optimistic that future inflows will continue to migrate into small and mid-cap funds. NS Venkatesh further stated, “Numerous SIP account openings are indicative of an expanding and dedicated investor base.”

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