Smallcap stocks: Last week, along with the main indices i.e. Sensex and Nifty, midcap and smallcap also remained weak. Both fell by 0.4 percent and this was the second consecutive week when the market closed under pressure. There were three main reasons for weakness – continuous selling by FIIs, fall of rupee and uncertainty regarding US-India trade deal.
During this period, BSE Sensex fell 444.71 points or 0.51 percent and closed at 85,267.66. At the same time, Nifty50 slipped 139.5 points or 0.53 percent to the level of 26,046.95. FIIs sold shares worth ₹9,201.89 crore last week. Whereas DII made strong purchases of ₹20,184.70 crore.
Vinod Nair of Geojit Investments says that the week started with weak sentiment. FII outflows, rupee weakness, and uncertainty over India-US trade talks increased risks. Rising bond yields in Japan and signals of a possible rate hike from the Bank of Japan made the global market more cautious.
Sharp fluctuations in small-caps
The BSE small-cap index slipped 0.4 percent. Many companies saw a huge decline of 12-23 percent. Such as Refex Industries, Kothari Industrial Corporation, Hubtown, Bliss GVS Pharma, Jagatjit Industries, Websol Energy, Fino Payments Bank, Deccan Gold Mines, and Reliance Infrastructure.
On the other hand, Fermenta Biotech, Rolex Rings, PRAVEG, Dredging Corporation India and some other companies rose 16-26 percent.
BSE Small-Cap Top Gainers (December 5-12)
What will be the mood of the market going forward?
Market sentiment may remain positive, but it will depend on some key factors – rupee stability, FII flow trend, and clarity on India-US trade deal. Along with this, global signals – policies of BoJ, ECB and BoE will also decide the direction of the market.
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