Analysts remain bullish on small-caps despite index hitting record high

Though there can be an intermittent correction, stock selection will be key, they say

Experts say aggressive stimulus measures announced by global central banks helped investors look beyond the worst economic outlook in more than 40 years
Web Exclusive Premium

Among stocks, Majesco, Hindustan Copper, Magma Fincorp, IIFL Finance and OnMobile Global have more than doubled in the past one month alone

Deepak KorgaonkarPuneet Wadhwa Mumbai/New Delhi
Small-cap stocks have been on a roll since the past few months with the S&P BSE Smallcap index hitting a record high of 20,290 points in Thursday’s intra-day trade. The index surpassed its previous high of 20,183 touched on January 15, 2018 in intra-day deals.

Despite the index hitting record levels, analysts see more headroom for the stocks in this segment as the economic recovery gathers steam, which they believe, should be beneficial for companies in the mid-and small-cap space. Moreover, the accommodative stance of most global central banks amid low interest rates will ensure that money continues to flow into emerging markets (EMs), including India. Though there can be an intermittent correction, stock selection will be key, they say.

Also Read

Mid, Smallcap indices slip over 5%; SpiceJet hits 10% lower circuit

5 reasons why the BSE Sensex slipped 812 points in Monday's trade

BSE Smallcap index hits 52-week high; CARE Ratings zooms 47% in 8 days

Sensex dips 474 pts from day's high, ends at 38,757; BSE SmallCap jumps 4%

PSU banks, Magma Fincorp drive S&P BSE SmallCap index near record high

Tata Motors, Tata Consumer: Tata Group stks may lead the next market rally

RailTel: Analysts expect shares to list at 16-18% premium over issue price

Disconnect between markets, real economy a global phenomenon: Sebi chief

Tata Chemicals hits fresh lifetime high; stock zooms 100% in 3 months

'PSBs need to step up as govt lifts embargo on grant of biz to pvt banks'

First Published: Feb 25 2021 | 2:30 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to