BSE Smallcap index hits 6-month high; Weizmann Forex zooms 107% in 7 days

Shares of small-cap companies were in focus on Thursday with S&P BSE Smallcap index hitting a 6-month high on the back of strong rally in agri inputs, fertilizers, education, metals, textiles and real estate stocks.

Titagarh Wagons, Shakti Pumps, Aptech, BGR Energy, Jindal Saw, Tejas Networks, RSWM, Deepak Fertilisers & Petrochemicals, Anant Raj Industries, Mishra Dhatu Nigam (Midhani), Gujarat State Fertilisers & Chemicals, Puravankara and NIIT have rallied by up to 20 per cent on the BSE.

At 01:05 pm, the S&P BSE Smallcap index, the top gainer among broader indices, was up 1.6 per cent at 14,095 points. The index hit its highest level since July 8, 2019. In comparison, the S&P BSE Sensex and S&P BSE Midcap index were up 1.4 per cent each.

Among individual stocks, Weizmann Forex was locked in the upper circuit band for the fifth straight trading day, thus rising 10 per cent to Rs 502 on the BSE. In the past seven days, the stock has zoomed 107 per cent from Rs 243 levels on December 31, 2019. The company is engaged in foreign exchange services and related activities business.

On clarification of sudden spurt in stock price and volumes, Weizmann Forex informed the exchange that there is no information/announcement/news which in its opinion may have a bearing on the price of the scrip.

BGR Energy soared 16 per cent to Rs 40.75 after the company announced order win worth of Rs 224 crore from Tamil Nadu Transmission Corporation Limited (TANTRANSCO). The electrical projects division of the Company has secured an order from TANTRANSCO for design, detailed engineering, fabrication, manufacture, supply, erection, testing and commissioning of 400/230- 110 kV AIS substation in Tamil Nadu on a total turnkey contract basis.

The fertiliser and agri-related companies rallied amid expectations of strong earnings growth in the October-December quarter (Q3FY20). With better acreage in Rabi 2019-20 and strong input consumption, the analysts expect domestic agrochemical and fertiliser companies to benefit.

Analyst at Emkay Global Financial Services expect agri input companies to deliver robust revenue growth in Q3 on higher rabi sowing (7 per cent yoy) and higher water availability (reservoir levels +52 per cent/+41 per cent above last year/10-year average) in the wake of good rainfall and a low base from last year.

The brokerage firm expects fertilizer companies to clock strong growth, driven by higher rabi sowing, and improved profitability due to falling raw material prices. Diammonium phosphate or DAP (+22 per cent), Nitrogen, Phosphorous and Potassium or NPK (+23 per cent) and urea (+19 per cent) saw robust volume growth in Q3.