Lower oil prices, softer inflation, better than expected GDP numbers, clear indication of interest rates coming down, policy continuity and finally strong price action by the bulls. There are many reasons for the current state of the smallcap segment. Whatever the conditions or tailwinds, one basic principle should never be forgotten. When it comes to equity as an asset class, smallcaps are always the riskiest place to take exposure so always be cautious. On the other hand, if one can find right smallcap stock at the right time, gains are much higher. But it is not an easy task to find the right stock. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks and lists stocks that fulfill the various criteria as specified in the algorithms & filters to find those that might help navigate the market.
With the strong catch-up of mid and smallcaps in last couple of months, brokerage house Axis Securities believes the broader market may see some time correction in the near term but the long-term story of the market continues to remain attractive. It lists top mid and small-cap picks for February.
On a day when the Nifty is trading with strong gains, several investors would be looking at their portfolio and feeling happy about the returns they have made in the smallcap part of their portfolio. This is exactly the opposite of what he or she might have felt just last week when a sharp correction took place in all segments of the markets, especially mid and smallcap stocks. Let the market be volatile, don t make volatile decisions. Now an investor who has taken exposure to small caps should first de-link both these correlations with what is happening to the Nifty. He or she should take a look at individual stocks and then decide to either hold or sell the individual smallcap stocks as in this space, while collective winds do impact these stocks at the end of the day long-term performance is determined by the fundamentals of each company.
The capital goods, which recently came out of a long business downcycle sees a kind of improvement which is surprising even the promoters, says Nirav Parikh of Molecule Ventures
The capital goods, which recently came out of a long business downcycle sees a kind of improvement which is surprising even the promoters, says Nirav Parikh of Molecule Ventures