35% of Nifty smallcaps rally up to 150% in Samvat 2078: Will they keep up?

If the Nifty small-cap index manages to leap over the 200-day moving average (DMA), this would trigger a positive sentiment in most of the small-cap stocks

While the Nifty Small-cap index has plunged 12 per cent in Samvat 2078, around 35 per cent of the index constituents with over 50 per cent of the new small-cap IPOs have firmly defied the weak trend.

Among small-caps, Elgi Equipments, Deepak Fertilisers & Petrochemicals Corp, Bharat Dynamics, Shree Renuka Sugars, and KPIT Technologies doubled in Samvat 2078. Technical charts suggest these stocks are readying for the next leg of upside with continued interest seen from market participants amid ramped-up volumes.

Elgi Equipments and Deepak Fertilisers & Petrochemicals Corp gained over 150 per cent each. Both the stocks recorded fresh