BSE Smallcap index hits new high; six stocks rally over 100% in one month

Shares of small-cap companies were on a roll on Monday with the S&P BSE SmallCap index hitting a new high of 25,809 on the BSE in the intra-day trade on the back of a strong rally in telecom, agrochemicals, fertilizers, chemicals, information technology (IT), textiles pharmaceutical stocks.

At 12:09 pm, the S&P BSE SmallCap index was up 0.90 per cent as compared to a 0.70 per cent rise in the S&P BSE Sensex a 0.29 per cent gain in the S&P BSE MidCap index. In the past one month, the SmallCap index has outperformed the other two by surging 6.4 per cent. In comparison, the benchmark Sensex the MidCap indices gained 1.4 per cent 0.28 per cent, respectively.

Individually, HFCL, OnMobile Global, Zuari Agro Chemicals, Grauer & Weil (India), Jindal Worldwide, Apex Frozen Foods, Accelya Solutions India, Newgen Software Technologies KRBL soared between 11 per cent 20 per cent in the intra-day trade today.

Meanwhile, a total of 32 stocks including Route Mobile, TTK Prestige, Tata Elxsi, Tata Coffee, Tata Communications, PNC Infratech, CCL Products, Action Construction Equipment, Dollar Industries JK Paper hit their respective record highs today.

Of these, six stocks — Shree Renuka Sugar, Brightcom Group, Rattanindia Power, Ramky Infrastructure, Globus Spirits Khadim India — have seen their market price more-than-double during the period.

Share of Shree Renuka Sugars, for instance, have zoomed 177 per cent in thw past one month. The stock of India’s most-valuable sugar-producing company, in terms of market capitalisation, recently said its board has approved capacity expansion of ethanol production after the government mandated 20 per cent ethanol blending in fuel by 2025 against a current blending of 7.79 per cent. “Considering this, the company sees a huge untapped demfor ethanol for the ethanol blending program of the government which can be of benefit to the Company in the future,” the company said on rationale behind capex plan.

HFCL, on the other hand, surged 20 per cent in the intra-day trade today, having zoomed 87 per cent in the past month. A sharp rally in the stock price has seen the market capitalisation of HFCL vault past the Rs 10,000 crore mark today.

HFCL is a leading technology enterprise engaged in manufacturing of high-end transmission access equipment, optical fibre, optical fibre cables (OFC) specialises in setting up modern communication networks for telecom service providers, railways, defence, smart city surveillance projects.

5G technology is the next big upgrade for telecommunication networks HFCL is gearing up to offer various products, solutions services for this segment. The capex required for 5G deployments on Pan India basis are likely to entail massive investments of around Rs 3,650 billion in the next 5-6 years, the company said in an investor presentation

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