Midcap and smallcap stocks have been the darlings of the street this year as retail investors flocked into those offering better risk-reward and look promising from an earnings growth perspective.
Despite such a stellar run, many of the smallcap stocks are far from their 52-week highs, indicating there is room for more upside.
About 8 smallcap stocks, including
, , , Kingfa Science and Technologies, and SVP Global are trading 14-74% lower from their 52-week highs.
Within the smallcap segment, public sector banks have had a stellar run, with Bank of India,
, and rising more than 11-21% and hitting 52-week highs.
Public sector banks have outperformed their private sector counterparts by a wide margin in 2022 on the back of significant improvement in asset quality and pick-up in credit growth.
SECTOR PERFORMER
The sector that outperformed the frontline as well as many second rung sectors was information technology.
And this has come on the back of a rally in global technology firms after US inflation data for October gave some respite to the investors and instilled hope of a slowdown in the pace of rate hikes by the US Federal Reserve.
The Nifty IT index gained 3% in the week ended November 11, and expectations are that the pack is set to add more gains into the kitty in the following weeks.
“With benchmark indices at 52-week highs, and the previous leg of the market rally primarily led by PSU banks, it probably be the time for the IT sector to outperform, leading the next leg of market rally,” said Anmol Das, head of research at Teji Mandi.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
