Analysts remain bullish on small-caps despite index hitting record high

Though there can be an intermittent correction, stock selection will be key, they say

Small-cap stocks have been on a roll since the past few months with the S&P BSE Smallcap index hitting a record high of 20,290 points in Thursday’s intra-day trade. The index surpassed its previous high of 20,183 touched on January 15, 2018 in intra-day deals.

Despite the index hitting record levels, analysts see more headroom for the stocks in this segment as the economic recovery gathers steam, which they believe, should be beneficial for companies in the mid-and small-cap space. Moreover, the accommodative stance of most global central banks amid low interest rates will ensure that money continues to flow