85 Smallcaps Soar with Double-Digit Returns in Action-Packed Market Week as Heritage Foods Surges 64%

It was an exciting week for the stock market, with many ups and downs. After a rally following exit polls and a drop on election results day, the market made a full recovery. This bounce back helped 85 smallcap stocks achieve double-digit gains over the week. Five of these stocks saw impressive gains of over 25%, with the top performer, Heritage Foods, gaining 64%.

Key Performers:

• Heritage Foods: Gained 64%. It surged due to strong performance by the regional party TDP in both assembly and Lok Sabha elections. TDP’s Chandrababu Naidu became a crucial player in the NDA coalition after BJP didn’t reach the majority.
• Moschip Technologies: Up 44.9%.
• PTC Industries: Rose 30.3%.
• Authum Investment: Increased by 27.9%.
• V-Mart Retail: Grew by 26.5%.
• BL Kashyap and Sons: Climbed 24.5%.

Eight other smallcap stocks, including Universal Cables, Avanti Feeds, Marathon Nextgen, Pokarna, IFB Industries, and Ganesh Housing, delivered gains between 20% and 25%.

Midcap Stocks Performance: Nine midcap stocks also performed well, including Emami, Bayer CropScience, and Uno Minda. Emami gained 15.6%, while Bayer Crop and Uno Minda increased by over 13% each.

Investor Outlook: The coming week’s market will be influenced by major domestic and global economic data, such as India’s WPI inflation, China’s CPI inflation, UK’s GDP data, US CPI data, and the US Fed’s interest rate decision. Investors are also watching how key cabinet positions in the NDA government will be allocated and the initial policy direction.

Expert Insights: Siddhartha Khemka from Motilal Oswal Financial Services noted that strong domestic economic data, falling oil prices, and Narendra Modi’s election as the leader of the NDA coalition have boosted investor confidence. Next week’s focus will be on cabinet appointments in areas like Finance, Defense, Roads, Energy, Commerce, and Railways.

Technically, the Nifty index is expected to remain stable within a range of 22,600 to 23,400, with 22,800-23,000 providing short-term support and 23,400-23,500 acting as a resistance level for further gains, according to Arvinder Singh Nanda of Master Capital.

Investors should be prepared for continued market volatility with a positive outlook.