This week, 46 small-cap stocks posted double-digit weekly gains, with five of them returning more than 25%.
HPL Electric and Power was the top gainer in the small-cap sector with a return of 40%, followed by PC Jeweller (36.17%), Kellton Tech Solutions (32.64%), and Shipping Corp (28.5%).
About 39 stocks including Alembic, GE Power, Faze three, D-Link, Welspun Specialty, RailTel, IFCI, MTNL etc. have provided returns of 10-20% this week.
In the mid-cap sector, four stocks including Oil India, IRFC and Sona BLW rose in double digits. While OIL gained 26.17 per cent, IRFC and Sona BLW gained 15 per cent and 10.4 per cent respectively. Among the Sensex pack, ITC topped the charts with a return of 5.85 per cent, followed by TCS with 4.3 per cent and Infosys with 3.9 per cent. The week started with modest gains led by strong performances by the pharma and IT sectors. However, uncertainty surrounding economic data releases and RBI policy announcements hampered any significant moves.What should investors do?
Analysts say there is a mix of anxiety and excitement in the market as Q1FY25 earnings estimates are muted and a growth-oriented budget is expected. On the other hand, guidance for strong GDP in FY25 has lifted investor sentiment.
With earnings season continuing, moves in certain stocks are likely to gain traction, with IT stocks likely to be in the spotlight as earnings and outlook start to look promising.
“Good progress in monsoon and expectations of higher volumes helped FMCG stocks outperform major indices. In the week ahead, economic data such as China GDP, Eurozone CPI inflation, ECB policy and US Federal Reserve Chairman speech will be closely watched by investors for clues on market momentum,” said Vinod Nair, head of research at Geojit Financial Services.
Technically, analysts say the index needs to break the 24,600-24,620 resistance level to start a new bullish momentum. Till then, investors should consider buying when the Nifty falls with support near 24,170, said Hrishikesh Yedve of Asit C Mehta.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not necessarily represent the views of The Economic Times)
