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Smallcap indices are set to wipe out recent losses sparked by market regulator Securities and Exchange Board of India's (Sebi) warnings of froth in the broader markets, as investors remained bullish on this segment last month. A nine-day rally in the Nifty Smallcap 250 index has put it on track to reclaim the level last seen on February 27 when Sebi's warning caused the bulls to hit a bump.The Nifty Smallcap 250 index has gained nearly 6% in a week though its 1-month change still reflects an over 1% value erosion. Smallcaps have been in the top form, outperforming their large and midcap peers over the past 12 months. The Nifty Smallcap 250 has jumped by over 70% during this period. On Wednesday, around 10:50 am, the index was up by over 100 points or 0.70% at 15,000 level.“The bounce back in small-cap shares was expected to be sharp,” a Bloomberg report said quoting Chokkalingam G, a strategist at Equinomics Research. Investors have been preferring smaller companies with better business fundamentals and “there is clearly a shift to quality,” he said.Also Read: Nifty may surge to 23,400 before general election outcome, says ICICIdirect; here’s whyThe rout followed a relentless advance in such shares, driven by robust earnings and a recurring gush of cash from individual investors. The rebound underscores the continued bullish outlook for smaller firms, which are expected to benefit more than their larger peers from the nation’s robust economic growth.Sebi’s comments had triggered a sharp selloff in smaller companies. The S&P BSE Smallcap Index erased more than $80 billion in market value in less than two weeks through mid-March, Bloomberg report said.On Tuesday, Sebi Chief Madhabi Puri Buch said that the current record valuation for local equities was an emphatic vote of confidence by foreign portfolio investors (FPI) in the country’s growth prospects.“Why is it that our markets are commanding this price to earnings multiple which is higher than not only the average of the world indices but also when compared with various nations?” Buch at a CII event on corporate governance.“At 22.2x, yes, some people say that we are an expensive market but, still, why is the investment coming? Because this is a reflection of the optimism and the trust and faith the world has in India today that we are commanding this kind of multiples in our markets,” she added.Notwithstanding some late selling, foreign portfolio investors (FPI) were net buyers in March with equity purchases worth Rs 35,098 crore. The month's performance eclipsed the lacklustre show over the previous two months, aided by strong buying trends in capital goods, automobiles, financials, telecom and real estate.In 2024, so far, FPIs have purchased domestic shares worth Rs 10,893 crore. In January they were net sellers and sold equities worth Rs 25,744 crore and followed it with purchases worth Rs 1,539 crore in February. While broader markets have performed strongly in the past 12 months, headline index Nifty's returns have been nothing short of impressive. The 50-stock index has given returns of nearly 29%.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Brokerage firm CLSA upgraded TCS, HCL Technologies and Tech Mahindra ahead of March quarter results, while JPMorgan has an underweight rating on Tata Technologies, BofA upgraded Jubilant FoodWorks to buy and Nomura recommends a reduce rating on M&M Finance.We have collated a list of recommendations from top brokerage firms from ETNow and other sources:Nomura on M&M Finance: Reduce| Target Rs 240Nomura maintained a reduce rating on M&M Finance with a target of Rs 240. Disbursement growth moderated further while the business asset growth remained healthy.GS3/GS2 improved by 70bp/90 q-q despite moderation in the collection efficiency. The average credit cost needs to be 0.9% in Q4 to achieve the upper limit of credit cost guidance.BofA Securities on Jubilant FoodWorks: Buy| Target Rs 555BofA Securities upgraded Jubilant FoodWorks to buy from neutral earlier with a target price of Rs 555. The global investment bank upgraded the stock to a buy post stock pullback.Further deterioration in business trends seems unlikely. The management is taking steps to revive growth for the long term. The company is investing through the cyclical downturn.JPMorgan on Tata Technologies: Underweight| Target R 800JPMorgan maintained an underweight rating on Tata Technologies with a target price of Rs 800. JV with BMW for SDV programs is a step in the right direction.The global investment bank still awaits clarity on accounting and margin profile. It still needs to see a scale-up of revenues from non-anchor clients to >$20mn.India remains an attractive location for ER&D outsourcing. The global investment bank maintained an underweight rating as the valuation is excessive.CLSA in IT sector: TCS, HCL Tech and Tech MahindraCLSA upgraded TCS to underperform from a sell earlier and also raised the target price to Rs 4043 from Rs 3925 earlier.The global investment bank upgraded HCL Technologies to underperform from a sell earlier but raised the target price to Rs 1553 from Rs 1536 earlier.TCS Mahindra was also upgraded to buy from outperform earlier but the target price was slashed to Rs 1508 from Rs 1518 earlier.The global investment bank recommended a sell on Wipro but raised the target price to Rs 445 from Rs 441 earlier. It recommended an outperform rating on Infosys but slashed the target price to Rs 1706 from Rs 1741 earlier.The global investment bank expects TCS, among large Indian IT firms, to top the charts in terms of CC QoQ growth.Infosys has entered a strong growth phase with a few large deal ramp-ups planned for Q1. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Indian market is likely to consolidate on Wednesday tracking muted global cues.The Nifty future closed negative with losses of 0.11% at 22577 levels on Tuesday. India VIX was down by 3.56% from 12.08 to 11.65 levels.On the weekly options front, the maximum Call OI is placed at 22,500 and then towards 22,800 strikes while the maximum Put OI is placed at 22,000 and then towards 22,300 strikes.Minor Call writing is seen at 22500 then 22700 strikes while some Put writing is seen at 22400 then 22200 strikes.“Options data suggests a broader trading range in between 22000 to 22800 zones while an immediate trading range in between 22300 to 22600 zones,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.In the cash market, foreign institutional investors (FIIs) continued being on sell mode in the new FY to the tune of Rs 1,622 cr while domestic institutional investors (DIIs) continued to be net buyers yesterday to the tune of Rs 1952 cr.FIIs' Long short ratio for index futures at the Inception of a fresh series is at 46.4% as on a net basis, they bought 6160 index futures.The Nifty PCR is currently at 0.90. “The overall range for the coming few sessions could be 22500 on the upside & 22180 on the downside,” Sudeep Shah, Deputy Vice President, Head of Technical and Derivative Research, SBI Securities, said.“While there is strong support that lies around 22180-22230, the zone of 22450-22500 will be the immediate hurdle for the index for the day,” he said.“Any sustainable move above the level of 22520 will lead to a short-covering move in Nifty towards 22650-22680 in the short term,” highlights Shah.“If in case index slips below 22180, it will lead to further selling pressure in the index upto the 22050-22020 level,” he added.We have collated a list of stocks from the F&O basket along with cash market from various experts for traders who have a short-term trading horizon:Expert: Nagaraj Shetti, Technical Research Analyst, HDFC Securities Ltd told ETBureauHUDCO: Buy| Target Rs 210| Stop Loss Rs 194Central Bank: Buy| Target Rs 67| Stop Loss Rs 60.50Natco Pharma: Buy| Target Rs 1060| Stop Loss Rs 960Expert: Kunal Bothra, Market Expert told ETNowAmbuja Cements: Buy| Target Rs 660| Stop Loss Rs 621LIC: Buy| Target Rs 1030| Stop Loss Rs 960Granules India: Buy| Target Rs 470| Stop Loss Rs 433Expert: Nooresh Merani, an independent technical analyst told ETNowJSW Steel: Buy| Target Rs 1000| Stop Loss Rs 840M&M: Buy| Target Rs 2200| Stop Loss Rs 1900Mahindra Lifespace Developers: Buy| Target Rs 750| Stop Loss Rs 590(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)