The shares of smallcap companies recorded significant gains on May 29, pushing the Nifty Smallcap 100 index up nearly 0.5 percent to hover around 17,868. The index has now extended gains for the fifth consecutive session, dodging the overall volatility in the market.
Notably, today's rise in smallcap stocks comes despite a muted sentiment in the overall market, with benchmark indices Sensex and Nifty standing in the red with marginal losses.
Midcap stocks also recorded strong gains to push the Nifty Midcap 100 index up 0.15 percent. However, the midcap index had dropped yesterday to close in the red with marginal losses, while smallcap index sailed through. "The Nifty Midcap index closed marginally in negative territory, while the Nifty Smallcap index outperformed the benchmarks and closed marginally in the green, supported by improved earnings visibility in select pockets," Bajaj Broking said.
Welspun Corp was the top gainer on the smallcap index, soaring over 10 percent to trade at Rs 897 apiece. This comes after the company's net profit nearly tripled to Rs 698 crore in Q4 of FY25. The firm's revenue from operations however dropped over 12 percent to Rs 392 crore.
ITI shares followed, rising over 6 percent to trade at Rs 360.70 apiece. This comes after the company reported a net loss of Rs 4.4 crore for Q4, significantly lower than the loss of Rs 238.8 crore in the same quarter last year. The improvement in performance was aided by an exceptional gain of Rs 62.41 crore.
Anant Raj and Castrol India shares meanwhile gained over 5 percent each. Notably, Anant Raj shares have surged nearly 17 percent in the past one month, while Castrol India shares jumped around 7 percent during the period.
Zen Technologies shares jumped 5 percent to hit the upper circuit at Rs 2,114 apiece. The stock accompanied its other defence peers, who have seen significant surge this year so far, amid heightened geopolitical tensions and government's 'Make in India' push.
Other notable smallcap stocks which recorded strong gains include Garden Reach Shipbuilders and Engineers (GRSE), Mahanagar Gas (MGL), Multi Commodity Exchange of India (MCX), Natco Pharma, Aditya Birla Real Estate, IIFL Finance, Brigade Enterprises, Radico Khaitan and Hindustan Copper.
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