Small-caps outperform Sensex, mid-caps during one month Lockdown period
Published On: Thursday, April 23, 2020 | By: Team KnowMyStock
Small-caps have outrun the mid-and-large caps in the last one month that the country has been under lockdown, triggered by the COVID-19 pandemic. The outperformance of the small-cap segment versus these two market segments also holds good from the lows the markets hit on March 24. The S&P BSE Small-cap index has recovered 26 percent as compared to a 23 percent rise in the S&P BSE Sensex and broader market index S&P BSE Midcap index from their respective 52-week low touched on March 24.
The run-up has been on account of a rally in stocks of pharmaceutical, fertilizer, chemicals and auto ancillary stocks.
“A number of investors who had lost money in the fall from the January peak levels started buying in order to make a quick buck and recover their losses when the markets started to move up in March. The mid-and small-cap segments, thus, got investors’ attention,” says experts.
In March 2020, Indian equity market had its second sharpest monthly fall, since October 2008, amid massive sell-off by investors who feared that the pandemic of coronavirus may cause heavy damage to the economy. The small- and mid-cap indices of the BSE plunged 30 per cent and 28 per cent, respectively in last month, underperforming the benchmark which down 23 per cent.
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