'Both Smallcap and Microcap indices have formed bullish engulfing candlestick patterns on the daily chart, indicating a probable trend reversal,' says Vinay Rajani, Senior Technical & Derivative Analyst at HDFC Securities.
ICICI Pru AMC's veteran CIO S Naren had advised caution regarding SIP investment in mid and smallcap stocks. "We think it is a clear time to take out lock, stock, and barrel from small- and mid-caps," he had said.
On Sunday, while speaking at the IFA Galaxy 2025, an event organised by a Chennai-based mutual fund association, Naren advised caution regarding SIP investments in mid- and small-cap stocks
A note by Whiteoak Capital made a case for SIPs, and said that the 'Cost of Delay' of starting late can be huge over the long term and the longer the market takes to reach the bottom, the higher the 'Cost of Delay.'
“Anticipate the anticipation of trouble” – Barton Biggs, Wealth, War and Wisdom
India's broader indices BSE MidCap and BSE SmallCap experienced steep corrections in October, declining over 7% and 4%, respectively. This marks the first monthly loss for the broader indices in seven and five months, respectively.
Key gauges of small- and mid-sized companies have tumbled since hitting September highs, putting them close to a so-called technical correction of a 10% peak-to-trough decline.
In the September quarter, as many as 27 companies that form a part of the Nifty50 Index saw a reduction in stakes held by retail investors
Sensex mcap increased 21.3 percent or Rs25.11 lakh crore since last budget while BSE MidCap and BSE SmallCap jumped 51 percent and 58.5 percent or Rs21.47 lakh crore and Rs 25.45 lakh crore respectively.
The panic-induced selling in markets is cleansing excessive valuations, particularly in the mid and small-cap sectors. Some fund managers believe this is a good time to deploy cash they have been sitting on
Small-caps and mid-caps are having a dream run on the bourses. How to find them in these markets. Catch N Mahalakshmi from Moneycontrol in conversation with Vijay Kedia, Veteran Investor and Director of Atul Auto.
Midcap vs largecaps: This movie has in fact played out in the stock markets several times. Last time midcaps rallied sharply in 2017, the rise was driven primarily by a re-rating of multiples
According to analysts, this rally is likely to sustain and gain further momentum for the next two years.
Both the BSE MidCap and SmallCap indices were nearly 3.3% off their recent high hit on September 15. The BSE MidCap is 5.5% away from its all-time high of 26,952.13 points it hit on October 18, 2021, while the BSE SmallCap is 6.1% away from its record high of 31,140.28 recorded on January 17, 2022.
Analysts believe that the recent correction in the market since October 2021 have made mid-cap and small-cap stocks good investment options. Both are trading cheaper than the large-cap stocks
With any sign of panic, the broader markets will be the first to crack, say analysts. However, there is a section of market experts who say that while some pockets of the mid and smallcaps may see a correction, certain sectors like commodity, sugar and metals still look promising
Weak global cues, rich valuation of the market and concerns over rising COVID cases are weighing on market sentiment
With signs of recovery in the macroeconomic climate, mid and smallcaps may surprise investors in the weeks and months to come, say analysts.
Mid-caps and small-caps were reeling under selling pressure. Their sectoral indices underperformed benchmark Sensex, with stocks falling up to 30 percent.
These stocks had fallen more than 50 percent during the Jan, 2018-September 2019 period.
In the S&P BSE 500 index, as many as 8 stocks fell 10-20 percent which include names like Delta Corp, Rail Vikas, Berger Paints, Bharti Airtel, Gruh Finance, Bandhan Bank, and Adani Green Energy.
After a disappointing run in FY19, most experts feel that the worst might be over for small and midcaps and investors can start accumulating quality stocks on declines.
The party in the broader market space has been continuing for the last 5 years. The S&P BSE Sensex is trading at a PE of 106.89x and a price-to-book value of 2.42.
It has been a buoyant start to the year for Indian equities. Strong domestic flows, absence of any major negative surprises in the Budget and a general lack of alternative investment options have overshadowed the worry of demonetisation delaying earnings recovery.
Axis Bank extended rally in afternoon trade, up more than 3 percent followed by ICICI Bank, HUL, M&M, Hero Motocorp and Bajaj Auto with more than 1.5 percent upside while ITC, TCS, HDFC, Lupin, Bharti Airtel, L&T and SBI fell 0.5-1.5 percent.