- Date : 10/04/2023
- Read: 3 mins
Sensex and Nifty rose on improved foreign fund inflows & positive global cues. BSE small-cap index gained 3%, with some top performers gaining between 25% and 53%. Don't miss out! Read this article to know more.
The Indian equity market has witnessed a surge in the week ending on 6th Apr, as both Sensex and Nifty closed higher, aided by improved overseas fund inflows and positive global cues. The BSE small-cap index added 3 per cent, with several companies adding between 25% and 53%, while foreign institutional investors (FIIs) were net buyers and domestic institutional investors (DIIs) were net sellers. Henceforth, the market will focus on macro trends and global news flows. This article analyses the market's performance and the potential opportunities it offers.
Some notable small-cap gainers during the past week
Dhani Services was the top small-cap gainer of the week, increasing by 53.3%. Nandan Denim, Black Rose Industries, and Rama Phosphates also experienced notable gains, with 47%, 33%, and 33%, respectively. Atul Auto, owned by Vijay Kedia, rose 30%. Other significant small-cap gainers included 3I Infotech, Fermenta Biotech, TARC, Gulshan Polyols, and TTK Healthcare.
Given below is an image clearly showing the weekly performance (week ending on 6th Apr 2023) of the best small-caps for the week
Also Read : Why 2023 can be good for small-caps and mid-caps?
Key developments during the last week
The Sensex has been on a continuous upward trend for the past five trading sessions, resulting in a gain of approximately 2,200 points. As a result, investors on Dalal Street have become richer by more than Rs 10.43 lakh crore, with the total market capitalisation of BSE-listed companies reaching Rs 262.37 lakh crore. On Friday, the bulls received further encouragement when the RBI decided to maintain the repo rate at 6.5%.
Also Read: Latest high flying stocks
Way forward for Nifty, as per the experts' opinion
As per the opinion of Kotak Securities' Deputy VP-Technical Analyst, Amol Athawale, it has been observed that the Nifty has reclaimed the 200-day simple moving average (SMA) after a considerable duration and has formed a bullish candle on daily and weekly charts. The index may encounter crucial support levels at 17,500 and 17,375, while the resistance zone could be 17,700-17,800. Similarly, Bank Nifty has developed a bullish candle on weekly charts and traded successfully above the 50-day SMA. For the index, the sacrosanct support level could be at 40,700 or the 50-day SMA, which could help the index move towards 41,500-41,700.
Umesh Kumar Mehta, the Chief Investment Officer of SAMCO Mutual Fund, has stated that due to the nearing peak interest rates, the equity markets are an ideal starting point for a new bull market, domestically and internationally.
As per Pankaj Tibrewal, representing Kotak Mutual Fund, a significant portion of the broader market froth has subsided. The forthcoming six months will provide ample opportunities for increasing equity allocation.
Motilal has stated that they have retained their estimate of Rs 812 for FY23 Nifty EPS, but they have revised their EPS projections for FY24/FY25 by 1.5% and 2.2%, respectively, to Rs 978 and 1,119. They have predicted a 12% growth in Nifty EPS for FY23. According to Motilal, the financial sector is expected to contribute to 82% of the incremental FY23E earnings growth for Nifty.
Also Read: What to expect in 2023
Conclusion
Indian equity market witnessed a surge, with Sensex and Nifty closing higher, driven by improved overseas fund inflows and positive global cues. BSE small-cap index added 3 per cent, and several companies added between 25% and 53%. FIIs were net buyers, and DIIs were net sellers. Henceforth, the market will focus on macro trends and global news flows. According to experts, the equity markets are at an ideal starting point for a new bull market, domestically and internationally.
The Indian equity market has witnessed a surge in the week ending on 6th Apr, as both Sensex and Nifty closed higher, aided by improved overseas fund inflows and positive global cues. The BSE small-cap index added 3 per cent, with several companies adding between 25% and 53%, while foreign institutional investors (FIIs) were net buyers and domestic institutional investors (DIIs) were net sellers. Henceforth, the market will focus on macro trends and global news flows. This article analyses the market's performance and the potential opportunities it offers.
Some notable small-cap gainers during the past week
Dhani Services was the top small-cap gainer of the week, increasing by 53.3%. Nandan Denim, Black Rose Industries, and Rama Phosphates also experienced notable gains, with 47%, 33%, and 33%, respectively. Atul Auto, owned by Vijay Kedia, rose 30%. Other significant small-cap gainers included 3I Infotech, Fermenta Biotech, TARC, Gulshan Polyols, and TTK Healthcare.
Given below is an image clearly showing the weekly performance (week ending on 6th Apr 2023) of the best small-caps for the week
Also Read : Why 2023 can be good for small-caps and mid-caps?
Key developments during the last week
The Sensex has been on a continuous upward trend for the past five trading sessions, resulting in a gain of approximately 2,200 points. As a result, investors on Dalal Street have become richer by more than Rs 10.43 lakh crore, with the total market capitalisation of BSE-listed companies reaching Rs 262.37 lakh crore. On Friday, the bulls received further encouragement when the RBI decided to maintain the repo rate at 6.5%.
Also Read: Latest high flying stocks
Way forward for Nifty, as per the experts' opinion
As per the opinion of Kotak Securities' Deputy VP-Technical Analyst, Amol Athawale, it has been observed that the Nifty has reclaimed the 200-day simple moving average (SMA) after a considerable duration and has formed a bullish candle on daily and weekly charts. The index may encounter crucial support levels at 17,500 and 17,375, while the resistance zone could be 17,700-17,800. Similarly, Bank Nifty has developed a bullish candle on weekly charts and traded successfully above the 50-day SMA. For the index, the sacrosanct support level could be at 40,700 or the 50-day SMA, which could help the index move towards 41,500-41,700.
Umesh Kumar Mehta, the Chief Investment Officer of SAMCO Mutual Fund, has stated that due to the nearing peak interest rates, the equity markets are an ideal starting point for a new bull market, domestically and internationally.
As per Pankaj Tibrewal, representing Kotak Mutual Fund, a significant portion of the broader market froth has subsided. The forthcoming six months will provide ample opportunities for increasing equity allocation.
Motilal has stated that they have retained their estimate of Rs 812 for FY23 Nifty EPS, but they have revised their EPS projections for FY24/FY25 by 1.5% and 2.2%, respectively, to Rs 978 and 1,119. They have predicted a 12% growth in Nifty EPS for FY23. According to Motilal, the financial sector is expected to contribute to 82% of the incremental FY23E earnings growth for Nifty.
Also Read: What to expect in 2023
Conclusion
Indian equity market witnessed a surge, with Sensex and Nifty closing higher, driven by improved overseas fund inflows and positive global cues. BSE small-cap index added 3 per cent, and several companies added between 25% and 53%. FIIs were net buyers, and DIIs were net sellers. Henceforth, the market will focus on macro trends and global news flows. According to experts, the equity markets are at an ideal starting point for a new bull market, domestically and internationally.
