At 152, number of smallcaps with double-digit weekly returns jumps over 3 times

Domestic markets continued their recovery rally this week, buoyed by positive US economic data, which diminished the likelihood of a US recession. Moreover, positive global sentiments from ceasefire talks between Israel and Hamas, along with a decline in crude prices, contributed to the rally.

During the week, as many as 152 smallcap stocks have delivered double-digit weekly gains with nine of them offering over 30% returns. This is more than thrice the number of smallcaps [43] that gained in double-digits last week.

Rane Madras was the top gainer in the smallcap pack with a 39% return, followed by SEPC (38%), Shriram Properties (36%), and Tasty Bite Eatables (35%).


About 3 stocks, including Nelco, Uflex and TVS Electronics, have offered returns between 25 and 30% during the week.

In the midcap segment, three stocks, including Piramal Enterprises, New India Assurance and Voltas, have risen in double digits. While Piramal has gained 11%, New India and Voltas were up over 10% each.

From the Sensex pack, Bajaj Finserv topped the charts with 5.8% returns, followed by Titan at 3.6% and JSW Steel at 3.5%.

In the week, IT stocks, which are reliant on the US market, ended marginally flat due to profit-booking, post the initial rally. PSU banks fully recovered losses from the last week, while mid- and small-cap indices outperformed the broader market.

What should investors do?

With no major events on the domestic front, attention will remain on global markets for direction. market participants will first respond to the dovish remarks by the US Fed Chair at the Jackson Hole symposium.

Powell said the time had come for interest rates to start reducing soon after affirming that the upsides to inflation reduced.

"A rate cut of up to 25 bps in September is anticipated, if confirmed, it will be taken positively by the market in the short-term," said Vinod Nair, Head of Research at Geojit Financial Services.

"Given the favourable global environment, we expect the Nifty to overcome the resistance at 24,850 and aim for new record highs soon. However, sustained participation from the banking sector is needed to drive momentum and push towards the 25,500 level; otherwise, the upward move may be gradual," said Ajit Mishra – SVP, Research, Religare Broking.

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