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GO BUSINESS Published: August 16, 2015 16:04 IST | Updated: August 16, 2015 16:04 IST New Delhi, August 16, 2015 Small stocks give big returns to investors; outshine blue-chips • PTI Smaller stocks are generally bought by local investors, while overseas investors focus on blue-chip shares The mid-cap and small-cap indices of the BSE have outperformed the blue-chip index so far this year and given big returns to investors. An analysis of the three indices shows that the mid-cap index this year rose 13 per cent, or 1,319.51 points, to 11,453.78, followed by the small- cap index with 5.47 per cent, or 610.38 points, to 11,766.78. On the other hand, gain in the blue-chip index has been just 2 per cent, or 567.89 points, to 28,067.31 in 2015. The 30-share index touched its all-time high of 30,024.74 on March 4, 2015. The S&P BSE mid-cap index scaled its historic high level of 11,666.24 on August 10 and small-cap index touched its record peak of 12,203.64 on August 5. Market analysts said that small and mid-caps suffer the most during times of uncertainty and crisis due to weaker balance sheets, which reflect in their stock prices as well, but when equities perform smartly, smaller stocks make big gains than the front-lines. Smaller stocks are generally bought by local investors, while overseas investors focus on blue-chip shares, they said. Retail investors are major participants in mid-cap and small-cap stocks. Improvement in demand and profitability would help smaller stocks continue to outperform the large-caps going forward, analysts noted. The mid-cap index tracks companies with a market value that is on an average one-fifth of blue-chips or large firms. Small-cap firms are almost a tenth of that. Overseas investors, key driver of the Indian stock market, have invested a net amount of Rs 43,715 crore in equities and Rs 39,207 crore in the debt market since January 2015. Printable version | Aug 17, 2015 10:01:36 AM | http://www.thehindu.com/business/small-stocks-give-big-returns-to-investors-outshine- bluechips/article7546833.ece © The Hindu Page 1 of 1 Small stocks give big returns to investors; outshine blue-chips - The Hindu 8/17/2015 http://www.thehindu.com/business/small-stocks-give-big-returns-to-investors-outshine-...

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Page 1: Http Www.thehindu

GO

BUSINESS

Published: August 16, 2015 16:04 IST | Updated: August 16, 2015 16:04 IST New Delhi, August 16, 2015

Small stocks give big returns to investors; outshine blue-chips

• PTI

Smaller stocks are generally bought by local investors, while overseas investors focus on blue-chip shares

The mid-cap and small-cap indices of the BSE have outperformed the blue-chip index so far this year and given big returns to investors.

An analysis of the three indices shows that the mid-cap index this year rose 13 per cent, or 1,319.51 points, to 11,453.78, followed by the small-cap index with 5.47 per cent, or 610.38 points, to 11,766.78.

On the other hand, gain in the blue-chip index has been just 2 per cent, or 567.89 points, to 28,067.31 in 2015.

The 30-share index touched its all-time high of 30,024.74 on March 4, 2015.

The S&P BSE mid-cap index scaled its historic high level of 11,666.24 on August 10 and small-cap index touched its record peak of 12,203.64on August 5.

Market analysts said that small and mid-caps suffer the most during times of uncertainty and crisis due to weaker balance sheets, whichreflect in their stock prices as well, but when equities perform smartly, smaller stocks make big gains than the front-lines.

Smaller stocks are generally bought by local investors, while overseas investors focus on blue-chip shares, they said.

Retail investors are major participants in mid-cap and small-cap stocks.

Improvement in demand and profitability would help smaller stocks continue to outperform the large-caps going forward, analysts noted.

The mid-cap index tracks companies with a market value that is on an average one-fifth of blue-chips or large firms.

Small-cap firms are almost a tenth of that.

Overseas investors, key driver of the Indian stock market, have invested a net amount of Rs 43,715 crore in equities and Rs 39,207 crore in thedebt market since January 2015.

Printable version | Aug 17, 2015 10:01:36 AM | http://www.thehindu.com/business/small-stocks-give-big-returns-to-investors-outshine-bluechips/article7546833.ece

© The Hindu

Page 1 of 1Small stocks give big returns to investors; outshine blue-chips - The Hindu

8/17/2015http://www.thehindu.com/business/small-stocks-give-big-returns-to-investors-outshine-...