Smallcaps’ resilient show in April has 500 stocks offering double-digit returns. How to navigate May
The BSE smallcap index, which is a gauge for smallcap stocks’ performance, rallied nearly 10%, while the midcap index jumped over 7%. This compares with a 1% rise in the BSE Sensex.
Within the smallcap space, over 500 stocks have delivered double-digit returns with the highest gain (Puravankara) going as high as 86%. It is closely followed by Dolat Algotech, Waree Renewable Technologies and Tejas Networks — whose shares have rallied over 70% in the last one month.
Nearly 13 smallcap stocks, including Moschip Technologies, Manorama Industries, Sanmit Infra, Abans Holdings, Yuken India, Indraprastha Medical Corp, Aegis Logistics, Gallantt Ispat, have rallied between 50-70%.
In the midcap space, around 52 stocks have offered double-digit returns with Exide Industries being the top gainer at 55%. Voltas, Aditya Birla Capital, IREDA, and Schaeffler India have all risen over 30% gains during the reporting month.
From the Sensex pack, banks have dominated the gains with Axis Bank and SBI occupying two spots out of top three. Mahindra and Mahindra was the lead gainer in the benchmark index with a gain of 12%.
Sectorally, metals had seen a strong rally during the month by surging over 10%. The public sector enterprise (PSE) stocks have also had a decent run as the index jumped 10.5% in March.
What to expect in May?
Even though there is stability in largecaps, which are doing well currently, analysts said euphoria is building up in the run-up to the general election as the market is discounting a Modi victory.
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