Dull Start To The Week; Titan Rallies 18% On Strong Q2 Result

Indian share markets witnessed mild selling pressure in final hour of trade to finish marginally higher. At the closing bell, the BSE Sensex closed higher by 46 points and the NSE Nifty finished flat. The S&P BSE Mid Cap finished up by 0.5% while S&P BSE Small Cap finished up by 0.3%. Gains were largely seen in consumer durables stocks, auto stocks and software stocks. Power stocks, capital goods stocks and bank stocks finished in red.

Small caps have comfortably outperformed the Large caps and how. The BSE Small Cap Index has returned 21.7% in FY18 compared to 12.5% by BSE 100 and 11.7% by the Sensex.

Small Caps – Outperformers in Current Financial Year

Expectedly, valuations of certain Small cap companies have gone through the roof. It is important to understand the highly volatile nature of these stocks. In a downturn, these stocks tend to move in the opposite direction much faster as well.

While there, undoubtedly, lies hidden opportunities in the small cap space, it is important to focus on fundamentals of these stocks. Next, assess if they have the potential to move on to the ‘Safe stock’ category in the future.

Asian stock markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.49% and the Nikkei 225 rose 0.04%. The Hang Seng lost 0.02%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.36% while Germany’s DAX is off 0.10% and London’s FTSE 100 is lower by 0.09%.

Rupee was trading at Rs 64.72 against the US$ in the afternoon session. Oil prices were trading at US$ 55.86 at the time of writing.

Titan share price rallied 18.3% after the company reported better-than-expected earnings. Profit jumped 67.44% in its September quarter versus the same period a year ago on strong sales in its jewellery business. Consolidated net profit rose to Rs 2.77 billion in the three months to September from Rs 1.65 billion a year ago. Total revenue increased 29.56% to Rs 35.17 billion from Rs 27.14 billion a year ago.