These 48 smallcaps log double-digit rise as Sensex settles 1.5% higher in September; do you own?

As many as 48 smallcap stocks logged a double digit rise in their stock prices - in the range of 10-70 per cent last week, as the 30-share BSE Sensex ended September with a gain of 1.5 per cent on strong macroeconomic indicators and resilience  imparted by domestic investors. 

Investors have shifted their focus to the Reserve Bank of India's Monetary Policy Committee (MPC) decision due next week and the upcoming July-September quarterly earnings updates. In September, the domestic market witnessed volatility as concerns over higher interest rates, foreign capital outflow and global economic slowdown weighed on sentiment. 

However, the Nifty 50 ended the month with a gain of 2 per cent while the Sensex rose 1.5 per cent. The BSE Smallcap index also rose about a per cent. The BSE Midcap index, on the other hand, jumped 3.7 per cent in September.

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Foreign portfolio investors (FPIs) turned net sellers in September because strength in the US dollar index and the US 10-year bond yield remaining high are short-term negatives for FPI capital flows to emerging markets like India, according to analysts. High crude oil prices in the last week of September also weighed on FPIs market behavior.

-Foreign institutional investors (FIIs) have sold ₹25,000 crore in cash markets in September. The US Treasury yields hit a 16-year high mark and crude oil prices almost touched $98 per barrel last week amid concerns over interest rates staying high for an extended period and its impact on the global economy.

In the week between September 25-September 29, domestic equity benchmarks Sensex and Nifty faced the brunt of global triggers, that led to investors getting cautious on long positions. On the weekly front, the BSE benchmark fell 180.74 points or 0.27 per cent, and the Nifty declined 35.95 points or 0.18 per cent. 

The frontline indices declined for the second week in a row. Nifty Realty and pharma rose the most whereas IT and Media declined the most this week. Analysts say that the tone is expected to remain bearish until Nifty breaches the 19,750-mark.

In the broader market, the BSE midcap gauge climbed 1.31 per cent and smallcap index advanced 0.57 per cent on Friday, September 29. Nifty 50 closed the day at 19,638.30, up 115 points, or 0.59 per cent while the Sensex closed at 65,828.41, up 320 points, or 0.49 per cent. 

On the stock-specific front, as many as 48 stocks logged gains in the range of 10 per cent - 70 per cent last week, outperforming the index.

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Omaxe, Nelcast, MSP Steel & Power, IFCI, CE Info Systems, Ashoka Buildcon, Antony Waste Handling, PNB Gilts, IIFL Securities, Ujjivan Financial Services, Syrma SGS Technology, RBL Bank, Kirloskar Oil, Zen Technologies, Artemis Medicare Services are among the smallcaps that logged a double-digit rise in their share prices last week.
 

Where are markets headed?

The stock market will remain closed on Monday, October 2, 2023, on account of Mahatma Gandhi Jayanti. The central bank's MPC will meet on October 4-6 to decide on interest rates and policy stance. Most analysts and economists expect the RBI will continue to maintain a pause on interest rates.

Aside from that, market participants will be keeping an eye on the movement of the rupee against the dollar and crude oil prices. Investments by FIIs, FPIs and domestic investors will also be monitored.

‘’Nifty is witnessing a correction where 19,500 is an immediate demand zone. The potential target on the downside is the 19,300–19,250 zone. On the upside, 19,800 is an immediate and critical hurdle; above this, we can expect bulls to get grip for a move towards the 20,000–20,200 zone,'' said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.