Action hots up in small and mid-cap indices
Investors are smiling for their investments in small-cap stocks are showing signs of faster recovery. Heard on the Street | Gainers and Losers | Analysts' picks
By Nimish Shukla, TNN |
AHMEDABAD: Millions of investors, whose wealth eroded substantially during the January meltdown in the stock markets , are smiling again. Their investments in mid-cap and small-cap stocks are showing signs of faster recovery than large-cap stocks.
Trading patterns in the last eight days clearly indicates that lot of action has been concentrated on the small and mid-cap counters.
With domestic funds and investors beginning to lap up relatively lower priced stocks, small and mid-cap indices have outperformed the benchmark sensex during these sessions. During the period between April 8 to April 21, 2008, sensex shot up 7.4%, while small and mid-cap index rose by 12% and 9.4%, respectively .
The current market rally is becoming broad-based , as overall breadth of the market has turned positive with gainers outnumbering losers in the last eight trading sessions.
Trading patterns in the last eight days clearly indicates that lot of action has been concentrated on the small and mid-cap counters.
With domestic funds and investors beginning to lap up relatively lower priced stocks, small and mid-cap indices have outperformed the benchmark sensex during these sessions. During the period between April 8 to April 21, 2008, sensex shot up 7.4%, while small and mid-cap index rose by 12% and 9.4%, respectively .
The current market rally is becoming broad-based , as overall breadth of the market has turned positive with gainers outnumbering losers in the last eight trading sessions.
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This can be gauged from the fact that advance-to-decline ratio of the market has substantially improved from 1.15:1 to 3.15:1 in this period . On Monday too, out of the 2,772 stocks traded on BSE, 2,052 stocks advanced, while 674 stocks declined and 46 stocks were unchanged.
More number of small and mid-cap stocks are hitting the upper circuit as they are offering better value compared to large-caps . On Monday, of the total 580 shares on BSE that hit circuit filters , 507 stocks were in the upper circuit, while 82 stocks were in the lower circuit zone.
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