Small-cap index outshines blue-chips cos in returns
4 Oct 2014 11:51 PM GMT
Driven by bullish stock market sentiment and strong participation from retail investors, the mid-cap and small-cap indices of the Bombay Stock Exchange (BSE) have given big returns, surging up to 62 per cent and outperforming the larger index Sensex so far this year.
An analysis of the three indices shows that while the small-cap index of the BSE has given a return of 62.44 per cent, the mid-cap index followed with 41.84 per cent.
On the other hand, gain in the blue-chip Sensex has been at 25.49 per cent so far in 2014. The mid-cap index touched its one-year peak of 10,000.86 on 15 September and the small-cap index hit its 52-week high of 11,245.52 on the same day.
Analysts said that when markets rally, these stocks make big gains than the front-lines. But during the times of uncertainty one witnesses greater losses in mid and small-cap counters.
Market experts said that positive investor sentiment following the formation of a new government and robust foreign fund inflows have been driving the domestic equity markets.
An analysis of the three indices shows that while the small-cap index of the BSE has given a return of 62.44 per cent, the mid-cap index followed with 41.84 per cent.
On the other hand, gain in the blue-chip Sensex has been at 25.49 per cent so far in 2014. The mid-cap index touched its one-year peak of 10,000.86 on 15 September and the small-cap index hit its 52-week high of 11,245.52 on the same day.
Analysts said that when markets rally, these stocks make big gains than the front-lines. But during the times of uncertainty one witnesses greater losses in mid and small-cap counters.
Market experts said that positive investor sentiment following the formation of a new government and robust foreign fund inflows have been driving the domestic equity markets.
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