Strong global cues and fall in crude oil prices helped the index to climb record highs. The ruboff effect was seen on the small & midcap stocks as well which remained under pressure in 2018 after posting stellar returns in calendar year 2017.

The S&P BSE Sensex rose 2.4 percent to end at a fresh record closing high of 36,541.63 for the week ended July 13, but nearly 40 stocks from the BSE Smallcap index rose 10-30 percent in the same period.

The Smallcap index which remained under pressure in 2018 rose nearly 1 percent for the week ended 13 July and as many as 37 companies gave double digit returns. Stocks which gave 10-20 percent return include names like Aegis Logistics, Prabhat Dairy, KRBL, Capital Trust, IVRCL, MIRC Electronics, Action Construction, Monet Ispat, and IVRCL among others.

Stocks which rose 20-30 percent include names like Arrow Greentech Ltd (up 27 percent), followed by Pincon Spirits (up 27.4 percent), GVK Power (up 27.3 percent), Electrosteel Steels (up 27.09 percent), and RS Software (up 22.4 percent).

Strong global cues and fall in crude oil prices helped the index to climb record highs. The ruboff effect was seen on the small & midcap stocks as well which remained under pressure in 2018 after posting stellar returns in calendar year 2017.

It will not be a one-way rally unlike what D-Street witnessed in the calendar year 2017. Most analyst expect the index to consolidate further and it will not one way move on either side.

The rally in the Sensex will not continue the way it has in the past one month, but it will be more broad-based wherein Sensex will consolidate but other indices will catch up,” Jimeet Modi, Founder & CEO at Samco Securities & StockNote told Moneycontrol.

In the S&P 500 index as many as 13 stocks recorded double digit returns which include names like Sonata Software (up 19.7 percent), Adani Power (up 19.2 percent), IDBI Bank (up 18.8 percent), ITI (up 18.4 percent), Shriram Transport (up 12.8 percent), Hexaware Technologies (up 12.7 percent), RIL (up 12.2 percent), Max India (up 11.1 percent), and L&T Infotech (up 10.49 percent) etc. among others.

Nifty likely to play catchup this week:

The Nifty50 which is 153 points or 1.3 percent away from hitting its record high of 11,171 rose 2.2 percent for the week ended 13 July. The Nifty posted one of the best weekly gains in the last three months and inched up above the hurdle placed at 10,900 on the back of positive cues from global markets, easing crude oil prices, positive inflow and quarterly earnings season.

For the coming week, we maintain the bullish stance in Index with buy on dips as a strategy. The dips as deep as 10900 – 10950 should be bought into for a higher target of 11,250 – 11,300. The approach has to be also sector specific with IT, Auto and Energy in buying radar,” Mustafa Nadeem, CEO, Epic Research told Moneycontrol.

Source:  moneycontrol.com