49 Small & midcap stocks in BSE500 rose 10-30% in a week
India has been recording around 4 lakh new COVID cases on a daily basis amid a second wave. However, the benchmark indices managed to climb above crucial psychological levels in the week gone by. The S&P BSE Sensex closed above 49,000 while the Nifty50 managed to reclaim 14,800.
Analysts attribute the rise in the broader markets to strong results posted by India Inc. in the small & midcap space.
“The Nifty-50 managed to climb the wall of worries and has posted weekly gains of ~1.3%. Indian markets are witnessing wild swings in the face of surging Covid-19 cases that have prompted several states to extend restrictions on movement by 1-2 weeks,” Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.
“The broader markets are seeing very good action due to the result season. Both, NSE Midcap and BSE Small Cap Index have outperformed the Nifty-50 this week. Strong Data from the US and China is helping global markets to remain on the higher side,” he said.
As many as 49 stocks in the S&P BSE 500 index rose 10-30% in a week, which include Lupin, Hindustan Copper, Fortis Healthcare, Vedanta, Tata Coffee, Coforge, HFCL and Dish TV India.
For two consecutive weeks now, the Metal index remained top performer, rising over 10 percent in just 5 trading sessions. Metal prices have been on a rise ever since there is a strong global demand revival, suggest experts.
“This week the metal index especially steel has outperformed because China recently removed the rebate on VAT on their steel exports which means that exports from China will not be as lucrative as before and Indian players will be able to cater to the existing demand internationally,” Nirali Shah, Head of Equity Research, Samco Securities said.
“In the coming week, the trend in the market will be dictated by developments in the COVID spread, upcoming result outcomes, and global cues,” Vinod Nair, Head of Research at Geojit Financial Services said.
“Industrial production data for March and inflation data for the month of April is expected to be released this week. IIP data is expected to show robust growth due to economic recovery witnessed in March while inflation rates are to remain at elevated levels,” he said.