Mid-cap and small-cap stocks in focus

The period December 8-14 under review saw markets move in a volatile, but in a range-bound manner. At the end of the first four trading sessions, they were fairly flat with minor gains. They were up on two of the four sessions and lost on the remaining two. Wednesday saw further advancement in the rally as markets gained ground. BSE Sensex was up 267.33 points or 0.43 percent at 62,6717.91 points, while Nifty was up 99.80 points or 0.54 percent at 18,660.30 points.

Tuesday saw the US declare inflation numbers which continued to show positive trend with a decline over the previous month. This gives hope that the commentary after the Fed meeting which is currently on and details of the Fed hike, which is likely to be 50 basis points, would be announced before you read this column tomorrow morning. Dow Jones gained on four of the five trading sessions. Dow was up on four of the five trading sessions, losing on just one. Dow gained 512.30 points or 1.52 percent to close at 34,108.64 points.

In primary market news, shares of Uniparts India Limited, which had issued shares through its offer for sale at Rs577, listed on the bourses at Rs575 on Monday. Shares closed at the end of listing day at Rs539.55, a loss of Rs37.45 or 6.49 per cent. Shares by Wednesday had recovered almost all the lost ground to close at Rs576.15.

The issue from Sula Vineyards Limited, which had tapped the capital markets with its offer for sale of 2,69,00,530 equity shares in a price band of Rs340-357, received a tepid response. The issue was subscribed 2.31 times. QIB portion was subscribed 4.13 times, HNI portion was subscribed 1.51 times and Retail portion was subscribed 1.61 times.

The issue from Landmark Cars Limited, which consists of s fresh issue of Rs150 cr and an offer for sale of Rs402 cr in a price band of Rs481-506 has opened for subscription from Tuesday and would close on Thursday. The issue at end of day-2 was subscribed 0.35 times. QIB portion was subscribed 0.09 times, HNI portion was subscribed 0.76 times and Retail portion was subscribed 0.32 times.

The period ahead of December 15-21 should see the Santa Claus or Christmas rally extend itself. With Central banks around the world having raised interest rates the most in one calendar year in the last 25 years to contain inflation, bearing initial fruit, it would be interesting to see what action they take going forward. The risk of this leading to demand contraction and recession in certain economies is a distinct possibility. It makes sense to ride the rally as long as it lasts.

It must be kept in mind that markets have to display volume and movement in the same direction. They would continue to be led by midcap and Smallcap space. Trade cautiously.

(The author is the founder of

Kejriwal Research and Investment Services, an advisory firm)