Smallcap stocks have given the highest returns to investors in the current financial year. In the current financial year, the BSE smallcap index has gained about 30 percent and the midcap index has gained 14 percent. The Sensex has gained only 6 per cent.
Smallcaps have gained about 30 per cent in the current financial year.
Smaller stocks have given higher returns or returns to investors in the current financial year (2021-22). The smallcap index has gained 29.72 per cent so far in the current financial year and has outperformed the Sensex. An analysis of the performance of small companies in the first four months of the current financial year shows that the BSE Smallcap index has gained 6,137.29 points or 29.72 per cent.
During this period, the midcap has gained 2,905.91 points or 14.39 percent. In comparison, the 30-share BSE Sensex has gained 3,077.69 points or 6.21 per cent. The midcap index had reached its record high of 23,207.51 points on 23 July. On the other hand, the smallcap had reached its all-time high of 26,895.93 points on 30 July. The 30-share Sensex of BSE had reached its all-time high of 53,290.81 points on July 16.
Vaccination is helping the market
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The market has performed exceptionally well. The broader market has outperformed the benchmark index. This has given higher returns to the investors of the broader market.” Analysts said that the improvement in economic activity and the pace of vaccination also helped the market.
There was a jump of 115 percent in the smallcap in the last financial year
In the last financial year 2020-21, the BSE Smallcap index rose 11,040.41 points or 114.89 per cent. At the same time, Midcap was in profit of 9,611.38 points or 90.93 per cent. In comparison, the BSE Sensex was up 20,040.66 points or 68 per cent.
Retail investors are more interested in small stocks
Market analysts say that small stocks are usually bought by local investors. At the same time, foreign investors invest money in bluechip or shares of big companies.
Stock market investors got rich from a total of 31 lakh crores
In the first four months of the current financial year, the capital of stock market investors has increased by more than Rs 31 lakh crore. Amidst a positive trend in the market, there has been an overall increase of Rs 31,18,934.36 crore in the capital of the investors in the first four months. The 30-share BSE Sensex has gained 3,077.69 points or 6.21 per cent during April-July in the current financial year.
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