Newgen Software Tech was the top gainer from the smallcap pack, offering 27% returns. It was closely followed by Max Estates and Shakti Pumps, both gaining 21% each.
Around 93% of small cap mutual funds failed to beat their benchmarks in April. Only 2 out of 27 schemes managed to outperform, emphasizing the riskiness of small cap investments and the need for a high-risk appetite.
After 2 straight months of underperformance, the midcap and smallcap indices massively outperformed the benchmark Nifty in the month of April. The Nifty Midcap index jumped 5.8% while the Nifty Smallcap index surged 11.4% in the previous month. In comparison, the benchmark Nifty was up 1.24%.
The BSE smallcap index rallied nearly 10%, while the midcap index jumped over 7%. Within the smallcap space, over 500 stocks have delivered double-digit returns with the highest gain (Puravankara) going as high as 86%.
FIIs and mutual funds consistently increase stakes in 12 smallcap stocks for four quarters, yielding up to 203% returns. Notable stocks include Dixon Technologies, Electronics Mart India, and Welspun Corp.