Domestic equity markets logged weekly gains, but the upsides were capped by hawkish sentiments that the Federal Reserve would keep interest rates higher for longer.
Benchmark indices Sensex and Nifty rose 0.99% and 0.62% for the week, respectively. Meanwhile, the BSE Smallcap index lost about 0.33% in the past five days.
As many as 27 smallcap stocks gave double-digit negative returns during the week, with TV Today Network leading the pack with a 29% fall. The stock closed at Rs 218.50 apiece on NSE.
BF Investment was another smallcap stock which was down over 20% during the week, down 23%.
Twenty-five stocks, including Zee Media and IDFC fell between 10-20%.
The other stocks that lost the most among the smallcap pack include Ester Industries (19.35%), Binny (-18.45%), Emami Paper Mills (-17.63%), Allcargo Logistics (-16.57%), Shaily Engineering Plastics (-15.65%), Sadbhav Engineering (-15.54%), Rico Auto Industries (-15.4%), Indiabulls Real Estate (-13.57%), Bhagiradha Chemicals & Industries (-13.4%), City Union Bank (-13.38%), RHI Magnesita India (-13.31%), Bajaj Healthcare (-12.63%), Oricon Enterprises (-12.42%), Indo Rama Synthetics (India) (-12.01%), Tarsons Products (-11.95%), Krsnaa Diagnostics (-11.69%), Kitex Garments (-11.38%), Arman Financial Services (-10.85%), VLS Finance (-10.81%), Campus Activewear (-10.72%), Excel Industries (-10.33%), Dhani Services (-10.09%) and Jindal Worldwide (-10.05%).
Going ahead, with no fresh triggers for the market, global trends are likely to dictate the equity market’s direction.”While global cues could act as the major trigger for domestic equities in the near-term, Nifty50 is likely to remain resilient due to reasonable valuations and India’s macro stability,” said Narendra Solanki, head of equity research at Anand Rathi Shares and Stock Brokers.
Vijaykumar of Geojit Financial Services said the markets are overtly reacting to the news flow from the US and the see-saw game is likely to continue till clarity emerges on where the economy is headed.
“There is a clear pattern to the trends from the mother market, the US. Whenever positive news like declining inflation comes, equity markets rise on hopes of a Fed pause and a possible rate cut by the end of 2023. Conversely, whenever data indicates a robust US economy, tight labour market and very slow disinflation, equity markets fall expecting the Fed to remain hawkish,” he said.
Technically, on a weekly basis, Nifty has managed to close in the green on a weekly basis which is a bullish sign.
“The daily momentum indicator still has a positive crossover and thus this dip should be bought into. We shall continue to maintain our positive outlook on the Nifty for a target of 18300 from a short-term perspective,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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