Do you hold these 50 smallcap companies, which have seen double-digit gains while the Sensex ended a turbulent week slightly higher?

 Do you hold these 50 smallcap companies, which have seen double-digit gains while the Sensex ended a turbulent week slightly higher?

The 30-share BSE Sensex ended October's second week with a modest gain of 0.5% after five days of volatile sessions due to geopolitical concerns arising from the Israel-Hamas conflict. As many as 50 smallcap stocks registered double digit increases in their stock prices, in the range of 12-40%.

On Friday, October 13, after minor intraday rebounds, domestic benchmark market indexes fell into the red. Index heavyweight companies including HDFC Bank, Kotak Mahindra Bank, State Bank of India, and Axis Bank saw significant selling in the last hour of trading, bringing down the benchmark indexes.

The Nifty 50 closed at 19,751.05. It had lost 42.95 points. The Sensex drops 125.65 points to finish at 66,282.74 on the index. Concerns about US inflation and information technology companies also dampened market mood. Indicating worries of slower growth, Tata Consultancy Services (TCS) (+0.87%), Infosys (-2.23%), and HCL Tech (+2.64%) have a negative impact on mood.

Despite the decline on Friday, the benchmarks recorded weekly gains of around 0.5% apiece as a result of a relief rally earlier in the week triggered by falling US bond rates and doveish remarks from US Federal Reserve officials.

While retail inflation in India fell to a three-month low of 5.02 percent in September, the increase in US consumer prices hurt global equities. According to Pramod Gubbi, the founder of Marcellus Investment Managers, "India has clearly stood out in terms of macroeconomic fundamentals, managed to contain inflation better than developed markets."

On the international front, recent US inflation data confirmed predictions on Federal Reserve interest rate increases, which led to a surge in Treasury rates and a halt in the advance of Asian stocks. The most recent data indicating that China's economy is still weak caused further pessimism.

As many as 50 smallcap companies outperformed the index last week on a stock-by-stock basis, with gains ranging from 12% to 40%. Among the smallcaps that saw a double-digit increase in their share prices last week were SpiceJet, Shalimar Paints, Omaxe, MOIL, PNB Gilts, Welspun Corp, Mahindra Holidays, Hitachi Energy, Phoenix Mill, Kalyan Jewellers, and Quickheal Technologies.

Despite certain worldwide worries, such as rising global interest rates, geopolitical upheaval in the Middle East, and ongoing stress in the Chinese real estate industry, domestic equities markets returned this week were favorable. Gains were seen this week in the Sensex, Nifty, BSE Midcap, and BSE Smallcap indexes. Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said that among the sectors, BSE Realty, BSE Metals, and BSE Energy all had robust increases over the course of the week.

Where are the markets going?

Mid- and small-cap stocks saw a lot of stock-specific activity, according to market participants. According to experts, the categories seem positive and provide compelling opportunities for investors to investigate choices, many of which are offered at favorable values.

We continue to be optimistic on Indian stocks. substantial commercial potential. There are many inflows, and we anticipate that this consolidation will provide favorable investment possibilities. Mid- and small-cap stocks saw a lot of stock-specific activity. The outlook for mid- and small-cap stocks is quite optimistic. Varun Aggarwal, the founder and managing director of Profit Idea, said: "This is a great time to get them, and many are available at really low costs.

Frontline indexes are still being affected negatively by the downturn in the IT industry. Analysts also advise management of certain stocks and hazardous assets to exercise cautious.

The mood is now being affected by the recent decline in IT majors and the underperformance of the banking sector. And without their assistance, it is challenging to proceed in any direction. Ajit Mishra, SVP - Technical Research, Religare Broking, stated, "We thus maintain our opinion to be focused on stock selection and risk management.