Despite overall bullish sentiments, the rally failed to completely trickle down to the broader markets as the number of smallcap stocks offering double-digit stocks saw a sharp drop. During the week, only 34 smallcaps gained in double digits, compared with 61 stocks in the preceding week.
Neogen Chemicals was the top gainer from the smallcap pack with nearly 51% returns, followed by Reliance Infrastructure (49%), Ravindra Energy (28%), and Concord Biotech (25%).
In the midcap segment, three stocks including Max Healthcare, Thermax and The Phoenix Mills have offered double-digit returns. While Max Healthcare has gained 17.6%, Thermax and The Phoenix Mills were up 13% and 11%, respectively.
From the Sensex pack, Mahindra and Mahindra topped the charts with 7.8% returns, followed by ICICI Bank at 7.2% and Nestle India at 6.6%.
The week began with moderate gains, led by strong performances in the pharma and IT sectors. However, uncertainties surrounding economic data and the RBI’s policy announcement hindered substantial moves.During the week, analysts said there was sectorial rotation among investors to largecaps, especially in consumption, staples, auto, finance, and realty.
What should investors do?
In the short term, analysts said investors could be cautious on export-oriented sectors like pharma and IT due to depreciation in the dollar. For Nifty, the attention is now focused on the next milestone of 26,000.
“Sector-wise, we maintain our preference for banking, financials, auto, and realty, while advising a selective approach in other sectors. Additionally, the emphasis should remain on index heavyweights and large midcaps for long positions,” said Ajit Mishra – SVP, Research, Religare Broking.
Technically, analysts say in the short term, the Nifty is sharply positive.
Having surged up in one session on Friday, there is a possibility of consolidation/breather pattern in the short term, before moving up further. Next upside targets as per Fibonacci extension to be watched around 26,250. Immediate support is at 25,650, said Nagaraj Shetti of HDFC Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
