Nifty SmallCap 100 hits record high of 19,529 after 12-day winning streak

The Nifty SmallCap 100 on Monday closed at a new record high of 19,529 after gaining for 12 continuous sessions, the longest gaining streak since April.

 

Since its recent lows on November 13, 2024, the Nifty Smallcap index has gained almost 12 per cent.

 

Benchmark Nifty 50 index and the Nifty Midcap 100 are 6 per cent and 3 per cent away from their all-time highs.

 

Experts say marquee names in the small space had turned attractive after the sharp correction over the past two months. Better sectoral diversity in the small and midcap space and the segment being insulated from the fallout of foreign portfolio investor (FPI) outflows too have underpinned their recovery.  

 

 

However, market experts are cautious about the outlook of Smallcap stocks going forward.

 

"It shows that the retail investors have become active despite the recent fall. Lack of other investment opportunities is luring them towards equities. As soon as they see some momentum, they are getting back. But one is unsure about the outlook. Valuations are expensive; expensive valuations can stay for a while, but then one cannot have heightened valuations year after year, especially when the earnings are taking a beating. The first quarter slowdown we thought was an aberration, the Q2 reconfirmed that it is a slowdown, and the third quarter could be bad if not worse," said Ambareesh Baliga, independent equity analyst.