Smallcap gainers fall further this week as bearish trend grips markets
The number of smallcap stocks which delivered double-digit gains during the week further fell to just 22. In the previous week, about 40 stocks had seen a double-digit rally, which too was a drop from about 100 double-digit gainers in the preceding week.
IFCI was the top gainer in the smallcap pack with 37% rise, followed by KIOCL, which jumped 28% and EKI Energy Services, whose shares increased nearly 26%.
Only three smallcap stocks have offered returns over 25% in this week.
Further, about three of them rallied between 20-25%.
In the midcap space, only two stocks — Indian Overseas Bank (IOB) and REC have delivered double-digit returns. While IOB was up 11%, REC rose 10.5%.
In the Sensex pack, Power Grid topped the charts with a 2.5% rally, followed by Asian Paints (2.49%) and Titan Company (0.7%).
Sectorally, realty was the biggest loser, led by a 7.3% fall in Godrej Properties and a 6.84% decline in Brigade Enterprises shares.
Obrei Realty and Mahindra Lifespace also lost 4% each.
PSU bank stocks saw gains, partially due to India's inclusion in JP Morgan's Government Bond Index, which resulted in a decline in bond yields.
What should investors do?
Even though the domestic markets are influenced by concerns around US Fed, which signalled future rate hikes, analysts said there is also an element of profit booking that is at work
«The factors that have influenced the markets may continue to exert some pressure in the coming week too,” said Joseph Thomas, Head of Research, Emkay Wealth Management.
Technically, Nifty formed a reasonable negative candle with upper shadow on the daily chart and a long bear candle on the weekly scale.
»The short term trend of Nifty continues to be weak. Having placed near the crucial lower
