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Shares of small-sized companies are back into action with the S&P BSE Small-cap index hitting fresh six-year high today.
The small-cap index has been the best performer so far in November, outperforming the benchmark index S&P BSE Sensex, gaining around 5.5%.
The small-cap index has been the best performer so far in November, outperforming the benchmark index S&P BSE Sensex, gaining around 5.5%.
At 1245 hours, the small-cap index was up nearly 1% or 83 points at 11,526 points. The index has touched high of 11,550, its highest level since January 22, 2008. It hit a lifetime high of 14,239 on January 8, 2008 in intra-day trade.
The mid-cap and small-cap indices track the performance of companies with smaller market capitalisation than the blue chip firms. Midcap index has also fared better than the Sensex and gave a positive return of 5.2% so far in the current month. The S&P BSE Sensex gained 1.1%.
IL&FS Engineering and Constructions, Kama Holdings Gammon Infrastructure, Indo Count Industries, Ashoka Buildcon, Elecon Engineering, Genus Power Infrastructures, Atul Auto and Styrolution ABS (India) have rallied more than 8% each today.
A continue money flow from the overseas investors and an impressive first half results have led the rally in small-cap stocks.
The foreign institutional investors have made net investments of over $1 billion or Rs 8,527 crore so far in the current month, stock exchange data shows.
Meanwhile, 415 small-cap companies has reported 50% year on year jump in their aggregate net profit to Rs 4,109 crore during the first half (April-September) of the current financial year 2014-15. The said sample of companies had a combined profit of Rs 2,742 crore in the same period last fiscal, the CapitalinePlus data shows.
Among the individual stocks, Indo Count Industries, TVS Srichakra, ISGEC Heavy Engineering, OnMobile Global, Jayaswal Neco, Jindal Saw and Eros International Media have rallied more than 30% each so far in November.
Owing to policy paralysis and other uncertainties, asset turnover ratios of most of the Indian companies had declined in the past few years.
"We expect India’s GDP growth to register modest acceleration in FY15 followed by a more visible recovery in the next two years. At present, the economy is on the cusp of a cyclical upswing. The current government is probusiness; its policies are aimed at being investment-friendly”, according to analysts at Anand Rathi Research.
Few months into office, the government has already deregulated diesel prices, also provided a clear direction for allocation of the de-allocated coal blocks. In Budget FY15, Government put focus on development of major infrastructure projects (roads, metro rail, industrial corridors, airports, development of smart cities); analysts said in a report dated 28 October 2014.
| Net profit in Rs crore | Price in Rs | |||||
| Company | H1YF14 | H1FY15 | %chg | 30-Oct-14 | Current* | %chg |
| Indo Count Inds. | 39.20 | 67.40 | 71.9 | 176.25 | 371.55 | 110.8 |
| TVS Srichakra | 15.26 | 43.30 | 183.7 | 1163.45 | 1707.00 | 46.7 |
| ISGEC Heavy | 48.39 | 66.45 | 37.3 | 3018.10 | 4162.00 | 37.9 |
| La Opala RG | 10.39 | 17.20 | 65.5 | 348.30 | 477.15 | 37.0 |
| Eros Intl.Media | 66.31 | 85.98 | 29.7 | 248.85 | 331.95 | 33.4 |
| Hitachi Home | 7.12 | 52.11 | 631.9 | 640.95 | 849.45 | 32.5 |
| Jayaswal Neco | 8.96 | 35.04 | 291.1 | 10.01 | 13.20 | 31.9 |
| Jindal Saw | 99.79 | 125.48 | 25.7 | 77.80 | 102.40 | 31.6 |
| Ratnamani Metals | 56.08 | 87.70 | 56.4 | 459.95 | 599.20 | 30.3 |
| Sundram Fasten. | 64.81 | 89.21 | 37.6 | 153.50 | 198.40 | 29.3 |
| H1 = April to September | ||||||
| Price on BSE as on 19 Nov 14, 13:05 hours | ||||||
| Source : CapitalinePlus | ||||||
