Small, mid-cap stocks steal the show; outshine bluechips
Small and mid-cap stocks on BSE have given handsome returns of up to 27% to investors so far this year, outshining their large peers.
While the mid-cap index soared 2,767.11 points or 23%, gains were sharper for small-cap index which recorded a surge of 3,326.38 points or 27.61%, shows an analysis of their performance so far this year.
On the other hand, the 30-share bluechip index Sensex has gained 3,291.94 points or 12.36%. The index hit an all-time high of 30,184.22 on Thursday.
As for the mid-cap index, it scaled a record high of 14,849.66 on Wednesday and small-cap index 15,486.40 level on the same day as well.
Also, total foreign inflow has reached Rs 91,385 crore ($14 billion) so far this year in the capital markets (equity and debt).
“A rally in midcap stocks raises confidence among aspirational small-cap and mid-cap companies that they too may get good valuation riding on investor appetite for such papers,” said Paras Bothra, President – Equity Research, Ashika Stock Broking.
Market experts say smaller stocks are generally bought by local investors, while overseas investors go for blue-chips.
The mid-cap index tracks companies with a market value that is on an average one-fifth of blue-chips or large firms.
Small-cap firms are almost …read more
