Stock Market: Indices retrace from highs; small caps on rampage

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By S Jha

New Delhi, June 9: In the absence of positive cues, the indices retraced from the recent highs, as profit booking brought selling pressure in the heavyweights. But the small caps continue to be action-packed, racing at a thrilling pace on the bourses.

Even the SIPs done in mutual funds for small caps are outperforming most of the funds. The explosive rise in the share prices of the small caps is seen to be jaw dropping.

Kaynes Technology, recently listed on the bourses, gained over 50 per cent in a flat one month span. The scrip is blasting away at exponential pace ever since announcing its March quarterly result. From Rs 666 listing price, Kaynes Technology, a contract manufacturer, has zoomed to Rs 1500 now.

Zen Technologies has gained over 38 per cent in the last one month. The scrip is buzzing on the basis of its expanding order book. Being the only listed anti-drone manufacturer, the defence player has emerged as a hot cake in the small cap space.

Avantel, another defence player in the satellite communication, space is blasting away on the bourses, gaining 22 per cent in just one month. This scrip has crossed its all-time high.

Titagarh Wagons on Friday closed with over seven per cent gain, and the scrip logged in a rise of almost 26 per cent in the last one month. The scrip is buzzing on the Vande Bharat theme after bagging the contract to manufacture the self-propelled trainsets.

Tata Teleservices is another small cap from the pedigree of Tata which is buzzing on the bourses. The scrip has gained over 27 per cent in the last one month. This company used to be always in upper circuits two years ago.

With Nifty closing with deep cuts on Friday, netting a lose of 71 points, the index has heavily lost after flying over 18700 level two days ago. However, the Bank Nifty was relatively resilient on Friday, as IndusInd Bank and Axis Bank gave strong support to the index. The Bank Nifty was held back on account of selloff in Kotak Mahindra Bank.

The Friday session was marked by extreme volatility, as the bulls and bears engaged in a tug of war to wrest control of the markets. While the Indian indices closed the week with two days of losses, the US markets have been gaining for the last three days.