With just about a week-long trading left in 2013, the BSE's mid-cap and small-cap indices have fallen by about 10 per cent and 16 per cent, respectively, so far this year. (Thinkstock)
As 2013 draws to a close, stock markets managed to record handsome gains driven by large blue-chips, but small and mid-cap stocks seem to be living up to their nomenclature with huge losses of up to 16 per cent.
The market benchmark appears set to end 2013 on a positive note with a modest gain of over 7 per cent, but such gains are not to be seen in a majority of stocks available in the market, which predominantly include those of mid-size and smaller companies, shows an analysis of various indices.
With just about a week-long trading left in 2013, the BSE's mid-cap and small-cap indices have fallen by about 10 per cent and 16 per cent, respectively, so far this year.
The slump in these two segments is in sharp contrast to their stellar performances last year, when they gave much better returns of up to 40 per cent. The gains registered by the blue-chip benchmark index Sensex was much lower at about 25 per cent during 2012.
Analysts say that mid-caps and small-caps have under-performed their large-cap peers primarily due to low participation from investors.
Buying appetite is missing in small and mid-cap stocks and large-caps are more in favour since they are in the trading portfolio of most of the funds, they added.
"The reason why the performance of small-cap and mid-cap stocks have not been up to the mark is that retail participation in the markets have been poor. Little stock related movement have been witnessed in small-caps and mid-caps this year," Augment Financial Services' Founder and CEO Gajendra Nagpal said.
Marketmen said retail investors have large exposure to mid-cap and small-cap stocks and in the last few months the retail segment activity has dropped significantly. When things become worse, fears make investors exit these stocks at the lowest valuations, they noted.
... contd.
ALSO READ
Growth in banking sector a great achievement: P Chidambaram
Yearender: Bluechips gain ground in 2013 but going gets tough for small stocks
Finnish city Oulu sees light at end of Nokia tunnel
BSE Sensex up around 100 points, foreign inflows helpTERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNE9dyxBK7X-l05209TrQn4GL4mvWw&url=http://www.indianexpress.com/news/yearender-blue-chips-gain-ground-in-2013-but-going-gets-tough-for-small-stocks/1210776/
Put the internet to work for you.
0 comments:
Post a Comment