250 Smallcap Stocks Shine With Double Digit Return as BSE SmallCap Records Biggest Gain Since 2020

As the Indian benchmark indices outperformed their global peers on Friday, the BSE SmallCap index emerged as a key winner after posting the best weekly returns of 7.87% in five years. Over 250 smallcap stocks posted double-digit returns during the week that ended on March 21.

According to a Moneycontrol report, value of more than 250 smallcap stocks including SML Isuzu, IKIO Lighting, Uttam Sugar Mills, Balu Forge Industries increased in double digits during the last five trading days.

BSE SmallCap registers best weekly returns in four years

Surge in the wealth of over hundreds of smallcap stocks during this week aligned with BSE SmallCap index recording its biggest ever weekly gain in last five years. BSE SmallCap gained 2.05% before closing at 47,296.81 points on Friday. Over the last five trading sessions, the index surged by 7.87% and recorded its best weely returns in five years, is since June 2020.

In addition to BSE SmallCap, BSE MidCap gained over 1.14% on Friday before ending its best-ever rally in the last four years. The index, consisting of 132 companies, jumped by 7.09% last week, the biggest ever leap since 2020.

Which small-cap stocks emerged as the biggest winner?

As per the Moneycontrol report, SML Isuzu, Uttam Sugar Mils, Balu Forge Industries, Sindhu Trade Links, KSolves India, Garden Reach Shipbuilders and Engineers, Valor Estate, Indraprastha Medical Corporation, Summit Securities, were among the top 250 smallcap stocks which witnessed a double digit growth in the week.

Nifty records best weekly returns since 2020

Apart from smallcap and midcap stocks, large cap stocks also maintained momentum during the last five trading sessions. The Sensex rose around 557.45 points to close at 76,905.51 points on Friday, whereas the Nifty increased by 159.75 points to close at 23,350.40 points. The Indian benchmark indices ended on a higher note on Friday after recording gains for the fifth consecutive session.

The stock market rally came as foreign portfolio investors turned net buyers after purchasing shares worth Rs 7,470 crore on Friday, the highest in March. FII buying session on Friday continued after they bought shares worth Rs 3239.14 crore on Thursday.

Domestic institutional investors offloaded shares worth Rs 3,202.26 crore on Friday, in continuation with their sell-off on Thursday. BPCL, ONGC, SBI Life Insurance, NTPC, Bajaj Finance emerged as the top NIFTY gainers on Friday, whereas Hindalco Industries, Wipro, Trent, Infosys, etc emerged as major laggards.

The strong performance of the Indian stock market came after the US Federal Reserve held interest rates steady but also projected its willingness to execute two rate cuts by the end of 2025. The announcement, which came in line with US Fed's December forecast has alleviated concerns about aggressive monetary tightening. Meanwhile, the US 10-year Treasury yield fell to 4.227% from around 4.5% in mid-February. The positive sentiments emerging in the global market has further supported the Indian stock market performance as they ensured potential higher inflows. Additionally, the market correction over the past two months is likely to be followed by heightened investors' interest.