Just 13 smallcap stocks offer double-digit returns in flattish market week

Due to a lack of significant catalysts, the market closed flat with a positive bias this week. Strong performances in heavyweight sectors such as banking and pharma helped offset declines in the IT sector, providing support to the major indices.

During the week, just 13 smallcap stocks delivered double digit weekly returns with three of them offering over 20% returns.

Intellect Design Arena was the top gainer in the smallcap pack with nearly 25% return, followed by Amber Enterprises (22%), Greaves Cotton (21%), and Aarti Pharmalabs (19%).


About 10 stocks including PTC Industries, Saurashtra Cement, Caplin Point Labs, Devyani International, PTC India, Hitachi Energy among others have offered returns between 10-20% during the week.

In the midcap segment, only Adani Wilmar managed to gain in double-digit with a return of 13%.

Among the Sensex pack, Mahindra and Mahindra topped the charts with 5% returns, followed by Adani Ports at 4% and Tata Motors at 3.7%.

During the week mid and small-cap indices also ended on a flat note as persistent concerns over FII outflows and the depreciating rupee, along with potential adverse tariffs and reduced expectations for rate cuts in 2025, contributed to the muted market trend.

What should investors do now?

Analysts say uncertainty surrounding Trump's economic policies and high valuations may impact the stock market in the short term, particularly in emerging markets. The rising USD and US bond yields are prompting FII outflows, although the easing quantum of these outflows offers some relief.

Looking ahead, as we enter the new year, markets will likely react to the third quarter earnings.

"Investors are likely to align their portfolios based on pre-budget expectations. Additionally, key data points such as the PMI data for India, the US, and China, as well as US jobless claims, will influence investor sentiment," said Vinod Nair, Head of Research, Geojit Financial Services.

Technically, analysts say the Nifty index continues to exhibit a constrained sideways-to-bullish trajectory.

"A breakout above 24,000 could spark a short-covering rally, driving the index toward 24,500. However, until such a breakout materializes, a 'buy on dips' strategy remains prudent," said Dhupesh Dhameja, SAMCO Securities.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)