Last financial year, smallcap stocks made investors rich, gave a bumper return of 37 percent
In the last financial year, the smallcap index gave the highest return of 37 per cent. Market experts say that smallcaps will continue to outperform in 2022-23 as well. In the last financial year, Midcap gave 19 per cent and Sensex 18 per cent.
Smallcaps will continue to outperform in 2022-23 as well.
In the last financial year 2021-22 small shares ,Small Cap Shares) has given a huge return of 36.64 percent to the investors. In this way, the shares of small companies have left behind the Sensex and Nifty in terms of giving returns. Experts believe that smallcaps will continue to outperform in 2022-23 as well. Geopolitical tensions, inflation concerns and foreign institutional investors (FIIs)Foreign Institutional InvestorsHowever, in the last months of the last financial year, the market had to face adverse conditions. Analysts said the first half of the last financial year was very good, while the second half of the market had to deal with volatility.
In the last financial year, the BSE Smallcap index rose 7,566.32 points or 36.64 per cent. On the other hand, Midcap gained 3,926.66 points or 19.45 per cent. In comparison, the Sensex rose 9,059.36 points or 18.29 per cent in the financial year 2021-22.
Correction will continue in the middle of the boom
Partha Nyati, Founder, Tradingo said that the market is showing strong fighting ability, overcoming all concerns. We are in a structural bull market, but there may be some ‘correction’ in the market from time to time. “Traditionally, midcaps and smallcaps outperform the bull market. I believe that even in the financial year 2022-23, their performance will be better than the main benchmark, because despite all kinds of difficulties, the Indian economy is on a good growth path.
April remains the best for the market
Nyati said that historically the month of April has been the best for the stock markets. Especially in the case of midcaps and smallcaps. In 14 out of the last 15 years, the BSE Smallcap index has closed with a profit. It has grown by an average of seven per cent during this period. “Therefore, we can expect a great start to the new financial year for the broader market,” he said.
Smallcap hits new record high on January 18
On April 19, 2021, Smallcap had hit its 52-week low of 20,282.07. At the same time, on January 18 this year, it had reached its all-time high of 31,304.44 points. Similarly, the midcap had reached its record level of 27,246.34 points on October 19 last year. It touched its 52-week low of 19,423.05 on April 19, 2021. The Sensex had reached its all-time high of 62,245.43 on October 19, 2021.
Good options for midcap and smallcap investment due to correction
Vinod Nair, Head of Research, Geojit Financial Services, said, “Smallcaps and midcaps have emerged as good investment options due to the ‘correction’ in the broader market during the last five-six months. However, there is uncertainty regarding inflation in the near future and volatility cannot be ruled out due to the slowdown in the economy.
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