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MUMBAI - Concerns over high valuations in the smallcap universe seems to have ebbed as stocks rallied in the week gone by and outperformed benchmarks by a wide margin. As many as 400 smallcap stocks gave double-digit returns of upto 52% in the week ended April 5, data by Ace Equity showed. Of these 400 stocks, 65 of them have given more than 20% weekly returns. Geojit Financial Services, PNB Housing Finance, Cochin Shipyard, Hindustan Construction Co, GMR Power & Infrastructure, Ujjivan Small Finance Bank, Coffee Day Enterprises, GE Power, Waaree Renewable, Oswal Greentech, OnMobile Global, Indraprastha Medical Corp are among the stocks, that gave over 20% returns last week. Of the 400 stocks, 22 stocks also scaled 52-week highs in the last week. The strong rally in smallcap stocks drove the BSE Smallcap index 6% higher last week. Meanwhile, benchmark S&P BSE Sensex gave just 0.8% returns. <iframe title="Smallcap stocks on a roll on D-Street" aria-label="Table" id="datawrapper-chart-i1lwD" src="https://et-infographics.indiatimes.com/graphs/i1lwD/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="439" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}();</script>Not only smallcap stocks, but stocks in the SME segment too, joined the party, as the BSE SME IPO index rallied 10% and gave the highest returns among all the BSE indices. The rally in these stocks indicate the unprecedented faith of retail investors eventhough market regulator Securities and Exchanges Board of India has voiced concerns over potential price manipulations in the SME segment and the building froth in the smallcap space. While the smallcap universe is showing no signs of fatigue, money managers are growing cautious about returns in FY25. Most money managers see returns moderating in FY25, compared to FY24. “With the sharp outperformance of the broader markets, the valuations in the small/mid-cap segment have become quite expensive,” said Sampath Reddy, chief investment officer, Bajaj Allianz Life. “We have been suggesting to customers in our investment communication that we prefer large-caps compared to small/mid-caps over the past few months and continue with that stance,” he added. (Data inputs from Ritesh Presswala)(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

An investor before choosing a mutual fund scheme to invest always looks for the past performance of that scheme. Ever wondered why the returns are expressed in different nomenclatures? Why are they written as CAGR, IRR or XIRR? ETMutualFunds made it easy for the first time investors to understand what these nomenclatures mean and how one should calculate them.Compounded Annual Growth Rate (CAGR)CAGR calculates annual growth rate of an investment over a particular period of time. This measure is the most common tool used to measure/calculate returns generated by a mutual fund scheme. It shows the average annual return delivered by a fund over a specific period of time assuming that the returns are compounded every year. For example, if you invest in a mutual fund scheme for five years, the CAGR would depict the average rate of return that the scheme has yielded every year for the past five years. With the help of a CAGR one will be able to find out the compounded annual growth or decline of the mutual fund investments. This metric is particularly useful for long-term investments. It is mostly used to assess the lumpsum investments. The formula for calculating CAGR is: =(end value/beginning value) ^ (1/number of years) -1.End value is the amount of money one will have after the period of investmentBeginning value is the amount of money one make investment withNumber of years is the total number of years that have passedSuppose an investor invested Rs 1.20 lakh in a mutual fund scheme. The investment grows to Rs 1.80 lakh after five years. CAGR will be = {(1,80,000 / 1,20,000) ^ (1 / 5)} -1 = 8.45%The CAGR will be 8.45% which means a lumpsum investment of Rs 1.20 lakh needs to grow at a rate of 8.45% every year for a period of five years to grow to Rs 1.80 lakh in the end.Also Read | RBI Policy: What pause means to mutual fund investorsExtended Internal Rate of Return (XIRR)This measure calculates annualized returns for investments with cash flows at irregular intervals. It is a single rate of return which would give the current value of investment when applied to every instalment or redemption.If you are investing through SIP mode, calculating XIRR will be the best way. This method is useful with different purchase prices and instalment periods. This method takes into account the timing of cash flows (inflows/outflows). Here is how to calculate XIRR for your SIP portfolio/ investments.Step 1: In first column add your date of investment 109084077Step 2: In next column enter all your investment transactionsIn this step, add all your investments transactions. Each transaction will be denoted with a minus sign (-) i.e. all outflows like investments and purchases will be marked negative. All inflows like withdrawals and redemptions will be marked positive. 109084130Step 3: In this step mention the current value of your investment and the date of redemption. 109084170Step 4: In this step use the XIRR function in excel. XIRR = (investment amount, date) 109084179Also Read | How much will you earn if you increase your SIP investment every year?Internal rate of ReturnThis metric is used to assess investment profitability.This method considers the changing value of money over time and acts as a special discount rate. In this method, cash flows are discounted at a certain rate based on when the cash flows happen to know the present value of investment. An investor can use IRR to calculate returns of their SIP, SWP, lumpsum investments with multiple cash flows. Suppose, you make an initial investment of Rs 1,000 and then every year make investments of different amountStep 1: Enter dates in one column and investment amount is next columnOne should make sure that your cash flow should have at least one negative and one positive value. 109084195Step 2: Use IRR formula to calculate internal rate of return for a series of cash flows that occur at irregular intervals 109084214

The United States is on high alert and preparing for a possible attack by Iran targeting Israeli or American assets in the region in response to Israel's strike on the Iranian embassy in Syria, a U.S. official said on Friday. "We're definitely at a high state of vigilance," the official said in confirming a CNN report that said an attack could come in the next week. Suspected Israeli warplanes bombed Iran's embassy in Damascus on Monday in a strike that killed an Iranian military commander and marked a major escalation in Israel's war with its regional adversaries. Iran's Islamic Revolutionary Guard Corps has said that seven Iranian military advisers died in the strike, including Mohammad Reza Zahedi, a senior commander in its Quds Force, which is an elite foreign espionage and paramilitary arm. Iran has said it reserves the right "to take a decisive response." U.S. President Joe Biden discussed the threat from Iran in a phone call on Thursday with Israeli Prime Minister Benjamin Netanyahu. "Our teams have been in regular and continuous contact since then. The United States fully supports the defense of Israel against threats from Iran," a senior Biden administration official said. (Reporting by Steve Holland; Editing by Leslie Adler and Rosalba O'Brien)

The Congress party on Saturday released a list of six candidates for parliamentary constituencies of North and South Goa; Morena, Khandwa & Gwalior, Madhya Pradesh and Dadar & Nagar Haveli. All India Congress Committee (AICC) general secretary K C Venugopal made the announcement ending the INDIA bloc's prolonged wait for its candidates in Goa.Sitting Congress MP from Goa, Francisco Sardinha has been dropped from the party's list of candidates for the upcoming Lok Sabha elections.Former Union minister Ramakant Khalap has been given a ticket from the North Goa constituency, while Capt. Viriato Fernandes is set to fight from South Goa.Khalap (76) was elected as an MP on the Maharashtrawadi Gomantak Party (MGP) ticket from North Goa from 1996-1998.He was the Union minister of state for law in late prime minister Rajiv Gandhi's cabinet. He later left the MGP to join Congress. As a law minister then, Khalap worked for the enactment of the Arbitration Act of India and drafted amendments to the Code of Civil Procedure of India and the Code of Criminal Procedures of India. He also introduced the Women's Reservation Bill in Parliament.Fernandes, the Congress's candidate from South Goa, is an ex-Indian Navy officer. His profile on X handle states that he was a retired officer of the Indian Navy, a "Kargil War soldier, mechanical engineer, aeronautics engineering specialisation and double MBA". He unsuccessfully contested the 2022 Goa legislative assembly elections from the Dabolim constituency.Satyapal Singh Sikarwar has been fielded from Morena constituency in Madhya Pradesh, and Praveen Pathak will contest from Gwalior. Narendra Patel will contest from Khandwa.&mdash; ANI (@ANI) Meanwhile, Ajit Ramjibhai Mahla has been given a ticket from Dadra and Nagar Haveli.The Lok Sabha polls in Goa will be held in a single phase on May 7, and the counting of votes will be held on June 4.The ruling BJP has already announced candidates for North Goa (Shripad Naik) and South Goa (Pallavi Dempo) seats.The North Goa seat has been a bastion of the ruling BJP since 1999, while South Goa, which has a sizable Christian population has mostly remained with the Congress, but was also won by the BJP and regional parties a few times.

"If we analyse the call put concentration data also, the put writers are aggressive at 22,400, 22,500 strikes so that clearly shows that base is now shifted higher and 22,400 is likely to act as a support area for any kind of minor dip if we get in the markets," says Rajesh Palviya, Axis Securities. The kind of moves that we saw in the market, what is the picture that you are making of it as of now?Very strong buying action across the board we have witnessed throughout the week and the broader market has clearly shown that this really can extend further as midcap and smallcap and across the sector there is a buying interest. So, looking at the broader outlook, we are still holding our bullish view and we believe that this rally can extend for Nifty. A possible target we can see is the continuation of the support towards 22,700 to 22,750. So, if we analyse the call put concentration data also, the put writers are aggressive at 22,400, 22,500 strikes so that clearly shows that base is now shifted higher and 22,400 is likely to act as a support area for any kind of minor dip if we get in the market. So, buy on dip should be your strategy, keep your stop loss at around 22,350, upside target we can see towards 22,750 to 202,800. For Bank Nifty there was very strong buying action, especially in Friday's session. HDFC Bank has shown very good traction. So, looking at the overall banking stocks as well as the Bank Nifty setup, we are expecting that this rally can extend further as the put writers have shifted their base towards 48,200, so that is likely to act as a good support area for Bank Nifty. Until 48,200 is intact for Bank Nifty, possible target we can see in the next week towards 48,900 to 49,000 also. So, this rally can extend in the Bank Nifty also, so buy on dips should be your strategy in Bank Nifty also.Talk to us a little bit about the earnings preview that you are expecting for quarter four to kick in because come 12th of April next week, TCS will be kicking off its earnings. We have seen some volatile moves coming in on IT over the course of the week as well. So, give us an overall view on what you think quarter four earnings are going to look like across the pack and also tell us a little bit about how you are playing the IT pack right now.I think most of the largecap IT stocks are consolidating in a narrow range and looking at the behaviour of these stocks ahead of earnings, a little bit of cautious approach participants are taking at this juncture. Though, if we analyse the overall structure for most of the largecap IT stocks, TCS is well-poised and looking at the overall short- to medium-term structure, we believe that till TCS is holding about 3900 kind of zone, there is a high possibility that TCS may exhibit upward momentum towards 4200 kind of zone, that is the target we are projecting for TCS at this juncture. But Infosys is looking a little weak on the near-term as well as on the short-term chart as the stock has slipped below to its 100-day moving average. So, if it continues to trade below 1520-1500 mark, then possible downside we can see in Infosys towards 1450. If we analyse another stock from IT pack, that is HCL Tech and Wipro. So, HCL Tech is looking bullish, though there was some corrective move in near-term, but overall long-term structure is bullish for HCL Tech and if stock continues to hold above 1500 mark, then possible pullback we can see in HCL towards 1600 to 1630. So, TCS and HCL Tech are our preferred choice at this moment based on the technical parameters. Infosys is looking slightly weak at this moment.Tell us a little bit about which are the stocks where you are seeing value emerging then?Three stock ideas which we feel could give further upside momentum in the coming week. First stock is from the banking space, that is IDFC First Bank. The stock managed to give a breakout on the daily chart of its falling trend line. There was a long built-up setup in derivative data. Stock managed to regain above its 100-day moving average. So, the kind of buying interest throughout the week which we have witnessed in IDFC First Bank, that clearly shows that this momentum can extend further. One can buy IDFC First Bank for an upside target of 87 to 88, keep your stop loss at around Rs 78. The second stock is from real estate space, that is Godrej Properties. In today's session, short covering was there. Stock is now approaching its multiple supply zone. Looking at overall structure for real estate space, we believe that Godrej Properties may continue further upside. There could be outperformance. So, one can buy this stock with stop loss of 2475, up side target we are projecting towards 2600. And the third stock is from the defence space, that is Bharat Electronics. Now, stock has again moved back to its all-time high trajectory. Looking at the buying interest throughout the day, that clearly shows that BEL may continue to move up, 235 could be the possible target in the near term, so one can buy BEL with stop loss of 220.