tech mahindra share price: 43 smallcap stocks post double-digit weekly gains amid market consolidation

Indian markets traded in consolidation mode this week despite the initial caution around the Hindenburg-Adani saga. However, positive global cues, including better US retail sales data and the decline in weekly jobless claims, helped the Sensex gain nearly 1%.

During the week, about 43 stocks delivered double-digit weekly returns with three of them gaining over 25%.

Inox Wind Energy was the top gainer from the smallcap pack with nearly 35% returns, followed by Kitex Garments (34.2%) and Suprajit Engineering (25.27%).

About four stocks, including Gravita India, Panacea Biotech, Inox Wind Ltd and Sarda Energy, have offered returns between 20 and 25% during the week.

In the midcap segment, only two stocks, including PB Fintech and Uno Minda, have risen in double digits. While PB Fintech gained 16.55%, Uno was up nearly 15%.From the Sensex pack, Tech Mahindra topped the charts with 5.2% returns, followed by Infosys at 5% and HCL Tech at 5%.The IT index outperformed the market with a 5% gain during the week in expectation of a loose monetary policy from the US Federal Reserve.Further, the first quarter results are concluded, which is largely in line with expectations with single-digit PAT growth. However, analysts said the weak performance by oil and cement companies may cause a cut in the FY25 Nifty EPS estimate.

What should investors do?

The week ahead, the market will keenly watch the Fed chair speech in Jackson Hole and FOMC minutes. An ease in economic slowdown may influence the chair to add more light on the rate trajectory.

“Sentiment improvements in Yen carry trade is likely to reduce the market volatility in the near term. However, investors are advised to remain cautious in the short to medium term. The focus will be on value stocks in sectors like FMCG, IT, pharma, and telecom,” said Vinod Nair, Head of Research at Geojit Financial Services.

Technically, analysts say Nifty has now moved towards hurdle area of previous huge opening downside gap of August 5 and the said down gap is expected to be filled soon around 24,700 levels.

The next upside to be watched are around 24,700 and 25,000 in the near term. Immediate support is at 24,350 levels, said Nagaraj Shetti of HDFC Securities.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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