Action now shifted to the mid-and small-cap segments after the stupendous rally
Published On: Tuesday, October 5, 2021 | By: Team KnowMyStock
Now the action seems to have shifted to the mid-and small-cap segments after the stupendous rally that saw the S&P BSE Sensex cross the 60,000 mark on September 24. At a time when the markets navigated through an uncertain phase of rising oil prices, plans of liquidity taper by the US Federal Reserve (US Fed), and developments in China, S&P BSE Sensex slipped over 1 percent. The mid-and small-cap indices on the BSE, on the other hand, moved up over 2 percent and 1 percent, respectively during this period. Gains in some of the individual stocks in the mid-and small-cap space have been noticeable. India Glycols, Patel Engineering, Brightcom, Godfrey Phillips India, Tejas Networks, and IDBI Bank have surged 24 percent to 47 percent during this period, ACE Equity data show.
According to historical data, when the markets recover, the mid-cap and small-cap indices rise faster than the overall market, say experts.They suggests investors now become choosy and invest only in quality names.
In the past one month, the S&P BSE SmallCap index has gained nearly 5 per cent, as against a 4.6 per cent rise in the S&P BSE MidCap index and 2.1 per cent rise in the S&P BSE Sensex, data show. CLICK HERE FOR MARKET PERFORMANCE
Another reason for these two segments doing well, according to some experts, is the interest shown by the retail investors.
At a macro level though, analysts still remain bullish on the road ahead for the large-caps and the overall market and suggest the higher pace of vaccination, pro-growth policy action and improved corporate earnings should keep the momentum going for them over the medium-to-long term.
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