These smallcaps gave double-digit returns despite Sensex and Nifty50 declines

While the main indices stumbled, some smaller companies still managed to deliver strong returns. The broader market mirrored the major indices, each falling by 0.4% and extending a losing streak to a second consecutive week. This downturn occurred amidst consistent outflows from Foreign Institutional Investors (FIIs), a weakening rupee, and uncertainty surrounding potential trade deals between the US and India.

During the week, the BSE Sensex declined by 444.71 points (0.51%) to close at 85,267.66. The Nifty50 index experienced a similar drop, falling 139.5 points (0.53%) to end at 26,046.95.

Data indicates that FIIs sold off equities worth Rs 9,201.89 crore. That said, the reality is a bit more complicated. Domestic Institutional Investors (DIIs) continued their buying activity, purchasing equities worth Rs 20,184.70 crore.

Sector performance was mixed. The Nifty Defence index saw a 3% decrease, while Nifty Media, Nifty PSU Bank, Nifty IT, and Nifty FMCG each fell between 1% and 1.7%. In contrast, the Nifty Metal index showed a positive trend, rising by 2%, and Nifty Consumer Durables increased by 0.4%.

According to Vinod Nair, Head of Research at Geojit Investments, "Indian equities began the week on a weak note, falling below 26,000 due to caution surrounding the U.S. Federal Reserve's policy decision, ongoing FII outflows, a persistently weak rupee, and uncertainty related to U.S.–India trade negotiations. Global risk aversion was intensified by increasing Japanese bond yields and expectations of a rate hike by the Bank of Japan in December. Sector performance varied, with IT facing pressure while PSU banks, real estate, and consumer durables experienced selective buying."

Nair added that market sentiment improved later in the week following the Federal Reserve's announcement of a 25-basis-point rate cut, which eased liquidity concerns.