A significant proportion of smaller companies remain multi-baggers despite the recent dip.
The report considers the post-pandemic returns on the top 500 of the Association of Mutual Funds in India (AMFI) basket of stocks. The data is based on stock performance as of 26 February 2024 since March 2020.
The S&P BSE SmallCap index fell 1.9 per cent on Wednesday and is down 5.3 per cent from its all-time high. Individual companies have seen larger volatility.
The Securities and Exchange Board of India defines a large-cap company as one which is among the top 100 stocks in terms of market value. Those ranked between 101-250 are considered mid-caps. Companies beyond the 250-mark are considered small-caps. The mutual fund industry body AMFI updates the list on a periodic basis.
Some of this outperformance is also to do with the fact that markets have gone up significantly from their pandemic lows. Around 28 per cent of all the stocks have higher returns than the Nifty 500 companies. It is 35 per cent for small-cap stocks.
First Published: Mar 06 2024 | 7:29 PM IST
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