The Budget week didn’t bring much excitement to the market as the government’s measures were both populist and prudent. The increase in short- and long-term capital gains taxes added to the volatility.
Impressive Smallcap Performance
Despite this, 132 smallcap stocks delivered double-digit weekly returns, with eight stocks gaining over 25%.
- Top Gainers: Antony Waste Handling Cell led with a 49.4% return, followed by MTNL (40%), Bhagiradha Chemicals and Industries (35.4%), and PC Jewellers (27.5%).
- Other Strong Performers: About 12 stocks, including Indian Hume Pipe, GHCL Textile, Thyrocare Technologies, Associated Alcohols, RSWM, Ambika Cotton Mills, and IFCI, offered returns between 20-25% during the week.
Midcap Segment Gains
In the midcap segment, five stocks, including IDBI Bank, Indian Hotels, and Hindustan Petroleum Corp, saw double-digit gains. IDBI Bank rose by 17.21%, while Indian Hotels and Hindustan Petroleum increased by 12% each.
Sensex Highlights
Among the Sensex pack, Tata Motors led with nearly 13% returns, followed by Sun Pharma at 9.2% and NTPC at 8.8%.
What Should Investors Do?
Despite the budget-induced volatility, the market has recovered its losses, driven by positive US GDP data and expectations of improved global demand.
Analysts believe the direction of the domestic market will likely depend on the progress of the earnings season and global economic updates, including US Fed and BoE monetary policies, US employment data, and Eurozone GDP figures.
Ajit Mishra, SVP of Research at Religare Broking, said, “The current trend suggests that bulls are in control, and we are likely to see further advances in the coming sessions. However, it is advised to remain selective, focusing on index majors and large midcaps.”
Technical Analysis
The index formed a significant bullish candle on both daily and weekly charts, indicating strength. If the index sustains above 24,860, it may attempt to test the psychological level of 25,000.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, said, “The current up move can extend towards 25,350-25,530. The support base now stands at 24,400, which is the 20-day moving average. While the daily momentum indicator still has a negative crossover, we should focus more on the price action and ride the up move.”
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