According to the report of ICICI Securities, the earnings of midcap and smallcap companies are increasing due to the economic recovery. Due to this, their shares are also seeing a rise.
Share Market
Even though the Indian economy has not fully recovered due to the Corona period, but despite this, select small cap and mid cap funds performed well in the stock market. A report by ICICI Securities claimed that the average return of smallcap funds has been 100 per cent in a year.
According to the report, those investing in smallcap funds have made huge profits. Credit risk funds and medium-term funds have also performed well. Apart from this, the Indian stock market also showed a strong position compared to the global market. This is the reason why foreign investors have also shown interest in investing money in it.
More profit potential in economic recovery
According to ICICI Securities, the earnings of midcap and smallcap companies may increase due to economic recovery. Those investing in their shares are likely to get better returns. The compound annual growth rate (CAGR) of midcap and smallcap companies is estimated to be 24 per cent during FY 2021 to 2023.
Asset management increased in May
The Asset Under Management (AUM) of the mutual fund industry increased to Rs 33.06 lakh crore in May. In April it was Rs 32.4 lakh crore. AUM has increased due to increase in valuation of equity funds. Apart from this, the performance of Nifty Next 50 and Sensex Next 50 has been good in comparison to Nifty 50 ETF in the last six months.
These stocks saw a rise
Small-cap and mid-cap stocks showed great growth this week and some stocks gained more than 28 per cent on a weekly basis. This includes shares like Venkys, Indian Overseas Bank, Central Bank of India. The names of Indian Overseas Bank and Central Bank of India have been decided regarding privatization, due to which there was a tremendous rise in these two stocks.
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