Benchmark Sensex rose 1.22% in September, as many as 62 stocks on BSE 500 clocked double-digit gains of up to 35%. Among these, about seven of them offered over 25% returns to investors during the month.
These include Gujarat Fluorochemicals, JM Financial, Jubilant Pharmova, Campus Activewear, Himadri Speciality Chemical, Maharashtra Scooters, Cholamandalam Financial Holdings among others.
The double-digit gains came from stocks of varied sectors of finance, pharmaceuticals, cement and construction, chemicals, textile and auto ancillary.
In the smallcap space, as many as 146 stocks rose in double-digits with Ravindra Energy turning multibagger boasting a gain of 112%.
About 9 stocks in the smallcap pack including Refex Industries, Motisons Jewellers, Reliance Infrastructure, PC Jeweller, Epack Durable among others delivered returns of 50% or more during the September month.Apart from the outperformers, there were quite a few laggards in both the smallcap and BSE500 segments. About 33 stocks in the BSE500 pack and 102 names in smallcap space declined in double-digits.In the BSE500 pack, Granules India, Oil India, Hudco among others were the worst hit, falling up to 21%.
What should investors do?
During the last week, the market responded positively to the Fedβs rate cut and stable economic data points, which accelerated foreign inflows and generated momentum in domestic markets.
Additionally, Chinaβs economic stimulus announcement has bolstered investor confidence, resulting in notable positive momentum in global markets, particularly within Asian indices.
Going forward, analysts said softer commodity prices, including oil, are favorable for the domestic economy, and there is an expectation of a recovery in corporate earnings in H2FY25, driven by anticipated increases in government spending.
“A visible trend is that this rally was predominantly led by large-cap stocks, which are relatively fairly valued compared to mid and small caps, which are showing signs of exhaustion. A risk to the rally is elevated valuations. Given the stimulus and attractive valuations like China, FII are inclined to eastern Asian peers. Looking ahead, investors will be focusing on the Q2 earnings, with an anticipation of an improvement in earnings outlook,” said Vinod Nair, Head of Research, Geojit Financial Services.
Technically, the index on a daily scale has formed a small red candle and on a weekly scale index has formed a big green candle.
“In the short term, as long as Nifty holds above the breakout level of 26,000 a βbuy on dipsβ strategy should be adopted. On the upside, 26,500 will be an immediate short-term target for the index,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates.
(Data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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