42 Smallcap Stocks Soar with Double-Digit Gains Despite Market Woes – Top Picks Include Filatex, Precision Camshaft, and More

This week, the stock market faced challenges due to foreign investor selling, weak second-quarter earnings expectations, and high stock valuations. As a result, the main market indices ended the week in negative territory. Despite this, 42 smallcap stocks managed to deliver double-digit returns, with five of them offering over 25% gains.

Top Performers in the Smallcap Segment

Nalwa Sons Investment was the top performer, delivering nearly 43% returns. Precision Camshaft followed with 29%, Motilal Oswal with 27%, and Renaissance Global with 26.4% gains. Additionally, companies like Kalyani Investment, Info Tech Transform, Filatex Fashions, and Sanghvi Motors each offered returns between 20% to 25%.

Midcap and Sensex Performance

In the midcap segment, no stock saw double-digit gains, but HPCL and Mphasis performed well, rising about 9% and 8%, respectively. Among the Sensex companies, ICICI Bank was the best performer, gaining 3%, followed by L&T and Tech Mahindra, both with 2.6% gains.

Positive News Boosted the Market Early in the Week

At the start of the week, the market received support from positive news, including stronger-than-expected PMI numbers, an increase in auto sales, and robust bank credit growth. However, geopolitical tensions and concerns about the upcoming U.S. presidential election led investors to seek safer assets, pushing gold to a new record high.

Expert Advice for Investors

Experts suggest that while short-term strategies may favor China over India, the long-term outlook for the Indian market remains positive, with stable growth and increasing capital expenditure. Investors should focus on specific sectors and stocks during this time, as the market is expected to remain volatile in the short term.

Market Outlook and Technical Analysis

Analysts recommend waiting for a clear breakout above the 25,150 mark on the Nifty index before expecting a sustained recovery. The performance of major banks like HDFC Bank and Kotak Bank in early Monday trading could also influence market direction.

On the technical front, the market formed a small positive candle on the daily chart, hinting at a possible short-term recovery. Key support levels are at 24,500, with resistance between 24,950 and 25,000, according to Nagaraj Shetti from HDFC Securities.