46 smallcap stocks offer double-digit weekly returns in rangebound market

Indian markets traded in a range in the week gone by with ebbs and flows even as benchmark Nifty made a lifetime high of 24,461 levels.

During the week, as many as 46 smallcap stocks delivered double digit weekly returns with five of them offering over 25% returns.

HPL Electric and Power was the top gainer in the smallcap pack with 40% return, followed by PC Jeweller (36.17%), Kellton Tech Solutions (32.64%), and Shipping Corp (28.5%).

About 39 stocks including Alembic, GE Power, Faze three, D-Link, Welspun Specialty, RailTel, IFCI, MTNL among others have offered returns between 10-20% during the week.

In the midcap segment, four stocks including Oil India, IRFC, Sona BLW, among others have risen in double digits. While OIL has gained 26.17%, IRFC and Sona BLW were up 15% and 10.4%, respectively.

Among the Sensex pack, ITC topped the charts with 5.85% returns, followed by TCS at 4.3% and Infosys at 3.9%.

The week began with moderate gains, led by strong performances in the pharma and IT sectors. However, uncertainties surrounding economic data releases and the RBI's policy announcement hindered substantial moves.

What should investors do?

Analysts say tjhere is a mix of anxiety and excitement in the market due to the muted Q1FY25 earnings forecast and the expectation of a growth-oriented budget. On the other hand, the guidance of a strong GDP for FY25 evoked investor sentiment.

Stock-specific moves to gain traction due to the ongoing earnings season and IT stocks will be in the limelight due to the good start to the earnings and outlook.

"The good progress in the monsoon and expectations of an uptick in volumes aided FMCG stocks to outperform the main indices. In the week ahead, economic data like China GDP, EuroZone CPI inflation, ECB policy, and the US Fed chair speech will be watched carefully by investors to get cues on market momentum," said Vinod Nair, Head of Research, Geojit Financial Services.

Technically, analysts said the index must break through the 24,600-24,620 resistance level to trigger fresh bullish momentum. Until then, investors should consider buying on dips in the Nifty, with support near 24,170, Hrishikesh Yedve of Asit C Mehta said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)