40 smallcap stocks surge by 10-40% while Nifty 50 and Sensex remain flat; Aster DM and Hind Copper show gains

In the past week, several smallcap stocks such as Abans Holdings, Transformers & Rectifiers, and KEI Industries saw a significant increase in their share prices. Domestic equity markets traded mixed, settling almost flat after three weeks of gains. Global market weakness and caution before earnings reports impacted sentiment.

Smallcap stocks rose by nearly a percent, while midcap stocks remained flat. Metal stocks saw a 2.90% increase, with pharma stocks dropping by 1.94%, led by a decline in Sun Pharma. Eicher Motors, Hindalco, and Tata Consumers were the top Nifty gainers, while Sun Pharma, Titan, and Cipla were the top losers.

Foreign institutional investors were net sellers, while domestic institutional investors balanced the outflows. The US reported higher-than-expected retail inflation for March, impacting global markets. Tata Consultancy Services reported growth in profit and revenue, while India’s March CPI print came in at 4.85%, the lowest since June 2023.

On April 12, profit booking led to a one percent decline in frontline indices, eroding investors’ wealth by ₹2.52 lakh crore. Sensex and Nifty faced heavy selling pressure, with all Nifty sectoral indices closing in the red. Market volatility increased due to upcoming elections and the start of the earnings season.

Analysts expect markets to remain volatile in the near term, driven by global concerns and domestic earnings reports. Technical experts suggest that the Nifty faces strong support at 22,339-22,101 levels with resistance at 22,810 to 23,100 levels. Despite the challenges, experts believe that long-term investors can find attractive opportunities in large and mid/small cap companies.