​Rising promoter stake fuels 8 smallcaps; stocks rally over 40% in September quarter

So far in the September quarter, the smallcap index has surged by approximately 17%, while the benchmark index Sensex has only managed a modest gain of just over 2%. During this rally, several smallcap stocks experienced substantial price increases in under three months. However, in order to identify potential momentum stocks that may instill greater confidence in investors, we have exclusively focused on stocks where promoters have increased their holdings in both the last two quarters of 2023 and, additionally, experienced a surge of over 40% in their stock price in the three-month period of the September quarter. ETMarkets has identified 8 stocks within the smallcap segment that meet the specified criteria. (Data Source: ACE Equity)

Promoter ownership and changes in holdings play a significant role in a company's development. A higher promoter stake reflects greater confidence on their part in the company they've built. It is an indication that promoters have faith in their business and will commit more funds to grow it further.