Within the small-cap space, outperformance was seen in the power generation and distribution stocks, engineering sector stocks and electrical equipment stocks. They were direct or indirect beneficiaries of the government spending in the previous two budgets.
Shares of Praveg, a multibagger smallcap stock, rallied 5% after Finance Minister Nirmala Sitharaman announced comprehensive development of tourist centres. Praveg recently received a work order for the development of tents at Agatti Island in Lakshadweep, known for its diverse aquatic life and vibrant festivals. With this addition, Praveg now has 9 properties in operation and 12 under development. The stock has more than doubled in the last year.
While it was an interim budget with no change in taxation laws and many other parts, for some sectors it was literally a full budget. The reason, the announcements made for them were pretty similar to what has been done in the past when a full budget is presented. So, when an announcement about fisheries, animal husbandry or rural housing is made, the companies in the whole chain will get impacted in a similar manner had these announcements been made in a full budget. From an perspective of investing what needs to be realized is that in the last couple of years, there has been an effort on the policy level that other parts of the rural economy which are not agricultural related get the boost. Given the fact that it is not an easy task to change the rural income matrix, it might take some time for them to get reflected in the bottomline and not every company in the chain would be able to do it also.
In talks with the Association of Mutual Funds in India (AMFI) this month, the Securities and Exchange Board of India (SEBI) asked for small and mid-cap funds internal stress tests so it could determine if they would have adequate liquidity to meet any large outflows, the sources said.
In talks with the Association of Mutual Funds in India (AMFI) this month, the Securities and Exchange Board of India (SEBI) asked for small and mid-cap funds internal stress tests so it could determine if they would have adequate liquidity to meet any large outflows, the sources said.