INSUBCONTINENT EXCLUSIVE:
scrips and small- and mid-cap counterparts, according to data from the BSE
average of around 84 per cent.
Since the high of January 2018 small- and mid-cap shares have dropped 30 per cent and 17 per cent
respectively, even as the bellwether S-P BSE Sensex has gained 21 per cent during the same period
Consequently, the price-ratio (or, the ratio of respective indices) between the midcaps and the Sensex has dropped to 0.069, the lowest in a
decade and compared with the 10-year average of 0.086, according to Bloomberg data.
The estimated earnings per share of the Sensex on
12-month rolling basis has been upgraded 6 per cent by analysts since the beginning of year thanks to the corporate tax cut
For the small cap index, it was reduced by 19 per cent.
The share of small- and mid-cap mutual fund schemes in the total assets under
management fell to 13.7 per cent in November 2019 compared with 17.1 per cent in April 2019, according to the data from the Association of
broader economy recovering in the next three to four quarters
possibility of fund rotation in favour of small- and mid-caps
The jury, however, is out on this.
Mid and small cap indices are trading 20-30 per cent below their highs
We may drag along 4.5 per cent kind of GDP levels for another one or two quarters before we see further data to corroborate that the
According to Harsha Upadhyaya, CIO - Equity at Kotak Mahindra AMC, more money can be made in midand small-caps rather than the large caps
