Broader indices at new high; 30 smallcaps gain between 10-50%

The broader indices rallied to fresh all-time high in the volatile week ended on September 20, but underperform the main indices, which also hit record high after more than anticipated interest rate cut by Fed.

This week, the broader indices touched fresh record high, however, for the week, BSE Mid and Smallcap indices ended on a flat note, while Largecap index rose 1.5 percent.

On the other hand, BSE Sensex surged 1,653.37 points or 1.99 percent to end at 84,544.31, while the Nifty50 index added 434.5 points or 1.71 percent to finish at 25,791.

On September 20, the BSE Sensex and Nifty hits fresh high of 84,694.46 and 25,849.25, respectively.

Among sectors, Nifty Realty index surged 4.5 percent, Nifty Bank index rose 3.5 percent, Nifty Auto index up 2 percent, Nifty FMCG index gained more than 1 percent.

However, Nifty Information Technology index shed nearly 3 percent, Nifty Media index down 2.6 percent and Nifty Pharma index declined 2 percent.

During the week, foreign institutional investors (FIIs) bought equities worth Rs 11,517.92 crore, however, Domestic Institutional Investors (DII) sold equities worth Rs 633.67 crore.

"After a sideways start, the market gained momentum with a surprise 50 bps rate cut by the US FED. The apprehension of a slowdown in growth was eased slightly after the lower-than-expected US jobless claim. The data pointed to a soft landing of the US economy at the start of the rate cut cycle. However, the IT index failed to rebound, mainly due to layoffs and the depreciation of USD. Strong monsoon and festive demand cheer the auto index with an outperformance," said Vinod Nair, Head of Research, Geojit Financial Services.

"Though the global economy went through a rate-cut cycle, the BOE stuck to a cautious tone and kept the rate unchanged, citing inflation pressure. On the other hand, BoJ kept its rate unchanged as expected as the central bank adopted a wait-and-watch approach after raising the interest rate in July."

"We have seen a sectorial rotation among investors to large caps, especially in consumption, staples, auto, finance, and realty. In the short term, investors are being cautious on export-oriented sectors like pharma and IT due to depreciation in the dollar," he added.

The BSE Small-cap index also ended flat but hit fresh all-time high of 57502.74. Neogen Chemicals, Reliance Infrastructure, Concord Biotech, Waaree Renewable Technologies, Reliance Power, Himatsingka Seide, ITD Cementation India, Sterling Tools, Maharashtra Scooters, Vakrangee, Marathon Nextgen Realty gained between 15-50 percent.

On the other hand, losers included Sportking India, KDDL, Sadhana Nitrochem, Abans Holdings, Renaissance Global, NELCO, M K Proteins, Vimta Labs, Rane Holdings, Syncom Formulations, PTC India, TruCap Finance.