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    63 smallcap stocks offer double-digit weekly returns in another record-breaking market week

    Synopsis

    Zen Technologies was the top gainer from the smallcap pack with nearly 37.2% returns, followed by Lloyds Steels Industries (33.9%), Pix Transmissions (27.9%), and Patel Engineering (26.2%).

    63 smallcap stocks offer double-digit weekly returns in another record-breaking market weekiStock
    It was another record-breaking week for equity markets despite a rise in domestic inflation and subdued IT earnings.

    During the week, as many as 63 smallcap stocks have delivered double digit weekly returns, 5 of them offered over 25% returns.

    Zen Technologies was the top gainer from the smallcap pack with nearly 37.2% returns, followed by Lloyds Steels Industries (33.9%), Pix Transmissions (27.9%), and Patel Engineering (26.2%).

    About 8 stocks, including Moschip Technologies, Mazagon Dock Shipbuilders, Precision Camshafts, HPL Electric, Lloyds Metals, Xchanging Solutions have offered returns between 20 and 25% during the week.


    In the midcap segment, only 3 stocks, Gillette India, Polycab India and Mphasis have risen in double digits. While Gillette has gained 14%, Polycab and Mphasis were up 10% each.

    From the Sensex pack, IT stock led the gains with Infosys, Tech Mahindra and TCS rising over 5% each.

    The US inflation print, that was released during the week, was modest in June, seeing a smallest increase in more than two years. This raised hopes that the Federal Reserve will soon end its cycle of interest rate hikes, boosting investor sentiments.

    Analysts say this positive outlook has contributed to strong buying in Indian IT stocks, despite muted Q1 earnings.

    What should investors do?
    In the coming week, stock-specific action will likely continue with some of the major companies slated to announce their first quarter earnings. All eyes will be on HDFC Bank, which will report its results this month — a first since the effective date of merger.

    Apart from the lender, Infosys, IndusInd Bank, HUL, ICICI Bank, UltraTech Cement, and Kotak Bank will also declare the results in the upcoming week.

    "Investors are eagerly awaiting more earnings reports in the coming week to determine their trading direction," said Vinod Nair, Head of Research at Geojit Financial Services.

    "Expectation of good quarterly results, consistent FIIs buying interest and good progress on the monsoon front would keep the overall trend of the market positive," said another analyst.

    Technically, analysts say the record close towards the end of the week is firm but the index needs to sustain above 19,550 for continuation of the up move.

    "The resistance at 19500, which was heavily built by Call writers, has been surpassed on a closing basis. This breakthrough is expected to lead to a significant rally as the Call writers unwind their positions. The Nifty may potentially reach levels around 19,700-19,720, but it's important to consider the short-term support at 19300," said Rupak De, Senior Technical analyst at LKP Securities

    (With 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 Economic Times)



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