Broader indices outshine benchmarks this week, 16 smallcaps gain over 15 pc

Mumbai, Oct 25 The broadcap indices outperformed major benchmarks in the volatile festival-truncated week, as the BSE midcap and smallcap indices rose by 0.5 per cent and 1 per cent.

Broadcap indices, or broad market indices, are benchmarks that track the performance of a wide range of companies to represent the overall financial market or a significant segment of it.

The surge was driven by foreign institutional inflows and largely positive Q2 earnings, according to analysts.

As many as 41 small-cap stocks gained between 10 and 36 per cent during the week and nearly 16 small-cap stocks logged returns above 15 per cent.

During the week, the BSE Sensex rose 0.30 per cent or 259 points, and closed at 84,211. The Nifty50 rose 0.33 per cent or 85.3 points, and closed at 25,795. Both indices have, however, gained nearly 5 per cent in October.

Analysts anticipated short-term volatility, identifying resistance at 25,850 and immediate support at the 25,600 to 25,500 zone.

Foreign institutional investors (FIIs) became net buyers this week, buying equities valued at Rs 342.74 crore, while domestic institutional investors (DIIs) maintained a 27-week buying streak, with net purchases totalling Rs 5,945 crore.

As of October, FIIs have sold a net total of Rs 244.02 crore, while DIIs purchased a net of Rs 33,989.76 crore, according to latest data.

Among sectors, the Nifty IT index gained 3 per cent, the PSU Bank added 2 per cent, the Nifty Metal index gained 1.5 per cent, the Nifty Media index was up 1.3 per cent, and the Nifty Oil & Gas index was up 1 per cent. Conversely, the FMCG and auto sectors declined by approximately 0.5 per cent each.

Analysts reported that the week started with festive optimism, but momentum slowed due to geopolitical tensions and profit-taking, despite record festive sales indicating strong consumer demand.

Looking ahead, investors are keen on India-US trade negotiations and key interest rate decisions from the US Federal Reserve and European Central Bank.

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