Small cap stocks gave ‘huge’ gains, Sensex-Nifty not even close

Mid and Small Cap Share - India TV Paisa

Image: File Mid cap and small cap

Financial year 2023-24 Shares of small companies have given ‘huge’ returns. Shares of mid- and small-cap companies listed in BSE’s mid-cap and small-cap indices have returned around 62 per cent in 2023-24. Mid-cap and small-cap stocks have outperformed Sensex and Nifty. We inform you that Sensex has returned 24.85% and Nifty 28.61% in FY 2024. In comparison, small and mid-cap stocks gave huge returns.

Why did you get strong returns?

Market experts say this reflects buoyant investor sentiment amid strong economic conditions in the country and good quarterly results from various companies. According to an analysis, the BSE mid-cap index jumped 15,013.95 points or 62.38 per cent in FY2023-24, while the small cap added 16,068.99 points or 59.60 per cent. In comparison, the 30-share BSE Sensex gained 14,659.83 points or 24.85 per cent in the financial year under review. Suman Banerjee, CIO of hedge fund Hedonova, said, “This shift in investor sentiment has been driven by strong economic conditions in India, which traditionally boosts shares of smaller companies during economic expansion. ”

Signs of strength in Indian economy

The broader market performed impressively in FY 2023-24. The BSE Mid-Cap Index hit its all-time low of 40,282.49 on February 8, after sliding to a 52-week low of 23,881.79 points on March 31, 2023. BSE’s small cap index touched its all-time high of 46,821.39 on February 7, after touching a 52-week low of 26,692.09 on March 31 last year. On March 7 this year, the 30-share BSE Sensex hit an all-time high of 74,245.17 points. Sunil Nayati, Managing Director, Swastika Invest Mart Limited said, “The outperformance of small cap stocks compared to the Sensex in the current financial year reflects the dynamic nature of the Indian domestic market and the diverse opportunities it offers to investors. ”

Smaller shares are bought by local investors.

According to market analysts, the shares of smaller companies are generally bought by local investors, while foreign investors focus on the shares of larger companies. The BSE Sensex was up 423.01 points or 0.72 percent in FY2022-23. However, the BSE small-cap index fell by 1,258.64 points or 4.46 percent, while the mid-cap index declined marginally by 42.38 points or 0.17 percent.

Latest business news.

Leave a Comment