Shares of small companies gave ‘big’ returns in the financial year 2023-24
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New Delhi. Shares of medium and small companies listed in the mid-cap and small-cap indices of BSE have given around 62 percent returns in 2023-24. Mid-cap and smallcap stocks have outperformed the Sensex. This reflects the bullish sentiment among investors amid strong macroeconomic conditions in the country and good quarterly results of various companies.
According to an analysis, the BSE mid-cap index jumped 15,013.95 points or 62.38 per cent in FY2023-24, while the small-cap gained 16,068.99 points or 59.60 per cent. In comparison, the 30-share BSE Sensex gained 14,659.83 points or 24.85 per cent in the financial year under review. “This shift in investor sentiment has been driven by strong macroeconomic conditions in India, which traditionally drive quick rises in shares of smaller companies during periods of economic expansion,” said Suman Banerjee, CIO at hedge fund Hedonova. ”
The broader market performed impressively in FY 2023-24. The BSE Midcap index hit its lowest level of 40,282.49 on February 8 after slipping to its 52-week low of 23,881.79 points hit on March 31, 2023. The BSE small-cap index hit its all-time high of 46,821.39 on February 7, while it had hit a 52-week low of 26,692.09 on March 31 last year.
The 30-share Sensex of BSE had reached its all-time high of 74,245.17 points on March 7 this year. Sunil Nyati, Managing Director, Swastika Investmart Ltd, said, “The outperformance of small company stocks compared to the Sensex in the current financial year reflects the dynamic nature of the Indian domestic market and the diverse opportunities it offers to investors.”
According to market analysts, shares of smaller companies are usually bought by local investors, while foreign investors focus on shares of larger companies. The BSE Sensex had risen 423.01 points or 0.72 percent in the financial year 2022-23. However, the BSE small-cap index fell 1,258.64 points or 4.46 per cent, while the mid-cap index declined marginally by 42.38 points or 0.17 per cent.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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