BSE Smallcap index surges 20% from December lows

The smallcap index hit an intra-day high of 13,871.95, its fresh nine-year high on BSE

Shares of smallcap companies are on a roll with the S&P BSE Smallcap index hitting a fresh nine-year high on the BSE in intra-day trade on Wednesday after a sharp rally in select real estate, financials, tyre and consumer durables companies.

The smallcap index hit an intra-day high of 13,871.95, its highest level since 2008. On January 8, 2008, the index hit a record high of 14,239.24 in intra-day trade.

At 11:26 pm; the Smallcap index was up 0.65% at 13,856.62 as compared to 0.30% decline in S&P BSE Sensex. From the December lows, the smallcap index rallied 20% against 19% rise in S&P BSE Midcap index and 14% gain in the benchmark index.

Meanwhile, of the 775 stocks from the BSE Smallcap index, one-third or 278 stocks outperformed the index by gaining more than 20% each, since December 26, 2016.

Six stocks – National Fertilisers, Indiabulls Ventures, Jindal Stainless, LT Foods, Jaiprakash Associates and Venky’s (India) have become multi-baggers, surging more than 100% during the period.

Brigade Enterprises, Kolte-Patil Developers and Sunteck Realty from real estate have surged between 5% and 11%. Godfrey Phillips India, Indiabulls Ventures, Kirloskar Electric Company, City Union Bank, Vijaya Bank, Repo Home Finance and Saint-Gobain Sekurit India are others from the smallcap index up more than 5% each today.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
GODFREY PHILLIPS	1225.00	1076.45	13.80
BRIGADE ENTERPR.	235.65	211.50	11.42
INDIABULLS VENT.	41.80	38.15	9.57
KOLTE PATIL DEV.	133.10	121.80	9.28
KIRL. ELECTRIC	40.20	37.05	8.50

Vaibhav Agrawal, head of research and ARQ said,” the victory of BJP in the assembly elections increases the control of BJP in these states. The assembly election outcome also indicates that PM Modi still remains popular leader in the country, despite decisions like demonetization.”

This clearly means that BJP remains a favourite to win the general elections in 2019. This gives BJP another 7 years to continue its pro growth policies. This will be positive for the country as it gives assurance of bring more reforms and also impart stability in the country. Thus we believe that Indian equities are set to see higher inflows in the equities, hence we remain bullish on the markets, added Vaibhav Agrawal.

Company	26/12/2016	LTP	% chg
Natl.Fertilizer	33.40	72.30	116.47
Indiabulls Vent.	19.85	41.90	111.08
Jindal Stain.	35.75	74.40	108.11
L T Foods	26.10	53.75	105.94
JP Associates	7.21	14.75	104.58
Venky's (India)	412.35	825.00	100.07
Rain Industries	51.65	100.50	94.58
Dhampur Sugar	116.15	225.20	93.89
Escorts	279.65	521.25	86.39
Lumax Inds.	719.55	1317.00	83.03
LTP: Last traded price on BSE in Rs at 11:45 am