)
Shares of small-sized companies are on a roll with the Bombay Stock Exchange (BSE) S&P BSE Small-cap index, which track the performance of companies with relatively smaller market capitalization, hitting three-year high on Tuesday.
At 10,347 hit in intra-day deals on Tuesday, the S&P BSE Small-cap index touched its highest level since November 2010 and has rallied 103% since August last year. The index hit 52-week low of 5,086 on August 7, 2013.
At this rate, the small-cap index has also outperformed the Sensex and mid-cap index, which gain 37% and 77% respectively during the same period.
Over an eleven-month period, the stocks of these small-cap companies have gained the maximum in terms of price. The price momentum in these stocks signifies the interest that have been generating in the markets.
Out of 453 companies from the small-cap index, the market value of as many as 254 stocks has been more than doubled. Of these, 105 stocks rose between 200% and 3000%.
BEML, Ceat, LG Balakrishnan and Brothers, VST Tillers Tractors, Hindustan Construction Company, SRF, Sintex Industries, Ahmednagar Forgings, Astra Microwave Products, Avanti Feeds and JK Lakshmi Cement are among notable stocks from small-cap index, rallied more than 300% during the period.
Meanwhile, analysts expect the undertone of Indian markets to remain positive ahead of Budget which will be tabled on July 10, as they expect the Finance Minister to lay down the new Government's vision for the economy over the next five years.
