35% of Nifty smallcaps rally up to 150% in Samvat 2078: Will they keep up?

If the Nifty small-cap index manages to leap over the 200-day moving average (DMA), this would trigger a positive sentiment in most of the small-cap stocks

While the Nifty Small-cap index has plunged 12 per cent in Samvat 2078, around 35 per cent of the index constituents with over 50 per cent of the new small-cap IPOs have firmly defied the weak trend.

Among small-caps, Elgi Equipments, Deepak Fertilisers & Petrochemicals Corp, Bharat Dynamics, Shree Renuka Sugars, and KPIT Technologies doubled in Samvat 2078. Technical charts suggest these stocks are readying for the next leg of upside with continued interest seen from market participants amid ramped-up volumes.

Elgi Equipments and Deepak Fertilisers & Petrochemicals Corp gained over 150 per cent each. Both the stocks recorded fresh historic peaks, adding 24 per cent and 18 per cent, respectively, so far in October this year. 

Other top outperformers include shares of Fine Organic Industries, Gujarat Narmada Valley Fertilizers and Chemicals, KEI Industries, and CreditAccess Grameen, which rallied 97 per cent, 63 per cent, 60 per cent and 51 per cent, respectively, during this period. 

That apart, among new IPOs listed under the Nifty Small-cap umbrella, Metro Brands doubled while Campus Activewear, Aether Industries, and Sapphire Foods India advanced 61 per cent, 41 per cent, and 9 per cent, respectively. 

On the flip side, Latent View Analytics, CE Info Systems, and MedPlus Health Services remained laggards during this period. 

Among other small-cap drags, Lux Industries, Zensar Technolgies, Welspun India, and Firstsource Solutions tumbled close to 50 per cent from last Diwali.

Meanwhile, the Nifty Small-cap index largely recovered from its 52-week low touched in June 2022, and if it manages to leap over the 200-day moving average (DMA) decisively set at 9,800, this would trigger a positive sentiment in most of the small-cap stocks.

Source: spidersoftwareindia