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Small, mid-cap indices beat larger peers in 2012 so far

Last Updated: Wednesday, November 28, 2012 - 18:11

Mumbai: The BSE mid-cap and small-cap indices have beaten their larger counterparts in terms of delivering returns in this calendar year so far.

After suffering a heavy blow last year, the mid-cap and small-cap indices bounced back smartly and recorded gains of up to 31.37 percent as compared to large-caps' 21.42 percent rise this calendar year.

Large-caps have the highest market value, followed by mid-caps and small-caps.

While the mid-cap index of the BSE has given a return of 31.37 percent since the beginning of 2012, the small-cap index has gained 29.28 percent.

In comparison, the gain in the blue-chip barometer index BSE Sensex has been much lower at about 21.42 percent, as per data available with the BSE.

According to market experts, during uncertain times mid-cap and small-cap counters witness bigger losses but when markets rally, these stocks move ahead of the frontline stocks.

"There has been a sporadic move in the markets in last five-six months. In the last few months, markets have seen many consolidations and generally when you have prolonged consolidation, one see mid-caps and small-caps running higher than blue-chip scrips," Ambareesh Baliga, COO, Way2Wealth said.

Mid-cap and small-cap stocks are generally looked at by local investors, whereas overseas investors' largely prefer to invest in large-cap stocks, he said adding that sectors like aviation and media have fared well in the recent past.

The mid-cap indices track the performance of companies with market value that are a fifth of blue-chip firms (large-caps), while the m-cap of small-cap firms are of almost one-tenth of an average large-cap stock.

Most stocks in the mid and small-cap segments were beaten down heavily during 2011, falling 34 percent and 42 percent, respectively. On the contrary, the Sensex had lost about 25 percent during the same period.


First Published: Wednesday, November 28, 2012 - 18:11
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