More than 40 smallcaps give double digit return as market ends flat

Midcap and Smallcap indices up 1% each

In the truncated volatile week, the Indian equity indices closed on a flat note with better manufacturing PMI and GST data, mixed earnings, FII support and DII selling.

In this week, BSE Sensex fell 58.15 points to finish at 61,054.29, and Nifty50 was down 4 points to close at 18,069.

For the week, BSE Large-cap Index ended flat, while BSE Midcap index added 1.4 percent and Smallcap index rose 1.3 percent.

"The domestic market continued to be positive at the beginning of the week, aided by strong FII inflow and favourable domestic macroeconomic data. The manufacturing PMI and the GST collection in April were better due to an increase in new business, a strong pickup in consumer demand, and improved supply chain conditions," said Vinod Nair, Head of Research at Geojit Financial Services.

"As of today, half of the Nifty 50 companies announced their results, and the earnings growth of those stocks were below estimates, mainly due to weak performance by IT, metal, and cement stocks. While the results for banks, financials, and auto were better than estimates," he added.

Among sectors, Nifty Consumer Durables index rose 2 percent, Auto index up 1 percent, and Nifty Energy added nearly 1 percent, while Nifty Bank index shed 1 .3 percent.

The BSE Small-cap index gained 1.3 percent with Rail Vikas Nigam, Vadilal Industries, Datamatics Global Services, Aurionpro Solutions, Take Solutions, Brightcom Group and TAAL Enterprises up 20-31 percent.

However, Radhe Developers (India), Manappuram Finance, Gallantt Ispat, The Bombay Dyeing Co, Entertainment Network India, Rushil Decor, GRM Overseas, Dishman Carbogen Amcis and Jindal Drilling Industries fell 10-19 percent.

The Foreign institutional investors (FIIs) extended their buying in the week ended May 5 as they bought equities worth Rs 5,527.76 crore, while domestic institutional investors (DIIs) turned net sellers as they sold equities worth Rs 2,735.25 crore.

After the sharp rise in the last few days, Nifty is now consolidating around 18,000-18,200 zones. While the overall market structure remains positive, expect Nifty to consolidate in the near term on the back of subdued global cues and profit booking in index heavyweights. Next week market would also take cues from inflation, state election outcome and ongoing earning season.

The markets will keep one eye on the quarterly results & the management commentary while also focusing on the US regional banking crisis, US government debt concerns, unemployment data and the crude oil prices. Meanwhile, as expected the FED increased interest rates by 25bps. Indian bond yields have corrected by ~50bps from its peak to 7.02% lowering the borrowing cost for government and corporates. Steep correction in Brent crude prices is an additional tailwind for the Indian economy.

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