Small stocks fall up to 11.6 pc in FY19; Sensex zooms over 17 pc

Small and mid-cap indices of the BSE suffered losses of up to 11.6 per cent during 2018-19, lagging behind their blue-chip peer which logged a gain of more than 17 per cent.

While the small-cap index plunged 11.57 per cent or 1,967 points during 2018-19 fiscal, the mid-cap index went down by 3 per cent or 482.97 points.

On the other hand, the Sensex jumped 17.30 per cent or 5,704.23 points. And, the NSE Nifty closed at 11,623.90, capping off the financial year with a gain of 14.93 per cent.

"The cycle of FY19 has completed, the benchmark Nifty had given return of 15 per cent y-o-y (year-on-year). Sectors like bank, energy and IT outperformed followed by FMCG (fast-moving consumer goods) and Pharma," said Vinod Nair, head of research, Geojit Financial Services Ltd.

According to market experts, headwinds such as concerns of slowdown in global economy, rising crude oil prices and trade war issue played spoilsport for the broader market.

Small stocks tend to suffer more during times of uncertainty, experts said.

The BSE Small Cap index had touched its 52-week high of 18,457.26 on May 2, 2018, while its one-year-low level of 13,099.46 was hit on February 18, 2019.

The mid-cap index jumped to its 52-week high of 17,059.37 on May 2 last year. The index slipped to its one-year-low of 13,538.62 on October 9, 2018.

The BSE 30-share benchmark scaled its all-time peak of 38,989.65 on August 29, 2018.

According to market analysts, smaller stocks are generally bought by local investors, while overseas investors focus on blue-chips.

The mid-cap index tracks companies with a market value that is, on an average, one-fifth of bluechips or large firms. Small-cap firms are almost a tenth of that.