Small-caps give large returns. Be selective now, say analysts

Hester Biosciences, JBM Auto, Oriental Carbon and Caplin Point Laboratories have rallied up 20%

The BSE Smallcap index was up nearly 1% for the second consecutive day, hitting a new high on Thursday on the back of a sharp rally in pharmaceuticals, chemicals, auto ancillary, public sector banks and real estate stocks.

The index hit a record high of 15,851 in intra-day trade on Thursday, surpassing its previous high of 15,811 touched on June 22, 2017. Thus far in the calendar year 2017, the BSE Small-cap index has outperformed by gaining 32%, as compared to 25% rise in the S&P BSE Midcap and 18% rise in the benchmark S&P BSE Sensex.

The S&P BSE