MUMBAI: Investors were able to make some gains in mid and small caps even in the week when Dalal Road market capitalization hit Rs 40 crore.
In the mid-cap segment, 51 stocks had positive weekly returns, and in the small-cap segment, there were about 375.
Major gainers in the broader market include , , and . These stocks are registering gains of 6-26% each week.
Abbott India, REC and Power Finance Corporation also hit 52-week highs.
Power Finance Corp stock gains momentum amid expectations of entry into the MSCI Global Indexes at the February review.
Broker Nuvama Wealth believes these two stocks are strong candidates for inclusion in the MSCI index based on their trading patterns.
PFC stocks have seen a significant increase in long positions in the derivatives segment. Shares have risen 14% since the maturity of the derivatives series in December, reaching its highest in over five years at Rs 160.80 on Friday. If the share price rises above INR 170 and trades above that level, it is eligible to participate in the MSCI indices.
Similarly, Bank of Baroda’s stock trades comfortably above the global market capitalization cutoff levels that support entry into the MSCI indices.
However, the S&P MidCap and SmallCap Indexes ended the week negative as losers outnumbered gainers.
However, the 0.5% decline in these indices was smaller than the 1.5% decline in benchmark Sensex.
What Should Investors Do?
Some technical analysts see the continued negative trend of the benchmark index as a positive sign.
“If (the market) recovers, the broader end of the spectrum will outperform the heavyweights, possibly witnessing the beginning of a pre-budget rally,” said Sameet Chaban, chief technical and derivatives analyst at Angel One. I will do it,” he said. .
While the risk reward for some stocks in the mid and small cap segment remains favorable, market experts recommend trading cautiously with tight stop losses.
“In the short term, markets appear to be facing several headwinds. Record-high valuation premiums for emerging markets may attract tactical shifts to other Exports may slow down on the back of the slowdown, which is a viable investment option,” said Milind Muchhala, Executive Director, Julius Baer India.
(Data input from Ritesh Presswala)
(Disclaimer: Professional recommendations, suggestions, views and opinions are their own and do not represent the views of The Economic Times)
