Sensex records 1% weekly gain as over 35 smallcap stocks surge 10-50%; Borosil and MRPL see notable gains

Last week, more than 35 smallcap stocks saw a significant rise in their stock prices, ranging from 10-50 per cent. This surge took place in the midst of a marginal weekly gain for the benchmark BSE Sensex, as investors shifted their focus to fundamentals and macroeconomic indicators. Despite fading expectations of early rate cuts by the US Federal Reserve, the frontline indices remained resilient.

Jubilant Industries, Force Motors, Sandhar Technologies, MRPL, Tips Industries, Borosil Renewables, 63 Moons Tech, Apollo Pipes, Novartis, HPL Electric & Power, Dilip Buildcon, Anuh Pharma, ASM Technologies, and Strides Pharma Science are some of the smallcaps that experienced a double-digit increase in their share prices last week.

The week began with subdued market conditions but gradually saw a recovery in the following sessions, which not only pared losses but also pushed the indices to close around the week’s high. The benchmark indices, both Nifty and Sensex, each gained over a percent to settle at 22,040.70 and 72,426.64, respectively. The sectors that performed well included auto, IT, energy, and banking, with the BSE Midcap index closing almost a percent higher. This was in contrast to the BSE Smallcap index, which closed flat for the week.

The broader indices oscillated sharply on both sides and eventually settled mixed. The broader, more domestically-focused small-caps of benchmarks fell 0.5 per cent, while mid-caps added 0.5 per cent, underperforming the benchmarks due to valuation concerns. Auto stocks led the gains, rising 4.3 per cent for the week, followed by public sector banks, which jumped 2.7 per cent.

Vinod Nair, Head of Research at Geojit Financial Services, noted that the Indian auto sector had a strong week, while PSU banks benefitted from improved asset quality and the government’s focus on fiscal prudence, attracting investors. This resulted in large caps gaining traction, while mid and small caps saw profit-booking driven by valuation gaps.

In conclusion, it was a week of mixed performance for the Indian stock market, with certain smallcap stocks outperforming the benchmark indices and others underperforming due to valuation concerns.