To curb volatility in small-cap counters, leading stock exchanges BSE and NSE have put in place an enhanced surveillance mechanism for companies that have a market cap of less than Rs 500 crore. The Enhanced Surveillance Measure (ESM) will be effective from June 5. Sebi and exchanges in a joint meeting have decided to introduce ESM framework for "micro-small" companies (on the main board with market cap less than Rs 500 crore), the National Stock Exchange (NSE) and BSE said in two separate circulars on Friday. The parameters for shortlisting the securities under the ESM framework include high-low price variation and close-to-close price variation. Under the framework, the exchanges said, "... the trading for these securities will be settled through a trade for trade mechanism with a price band of 5 per cent or 2 per cent (if the scrip is already in the 2 per cent band)." "For securities in Stage II, the trading will be settled through a trade for trade mechanism with a price band
Capital markets regulator Securities and Exchange Board of India plans to ease a rule that will make fund managers breathe a little easier
The week gone by had 4 trading sessions, but it had plenty of action and behaved on expected lines. It began positively, went sideways, gained and then crashed
SBI Small Cap Fund's consistent performance is a result of the fund manager's endeavour to find good businesses run by competent people at reasonable prices
Limit exposure to this volatile category to 10-15% of equity portfolio, enter with 7-10-year horizon
Large-cap companies are known to weather the market storm better, while smaller stocks tend to fall more during volatile market conditions
They will outperform if GDP, earnings growth sustain, but global risks pose threat
"Maximum returns are seen when small-caps of yesteryear become mid-caps of today and large-caps of tomorrow", says Krishna Kumar Karwa
Limit investments in this space to 10-15% of your corpus, though; pay attention to fund size
Massive inflows, especially in red hot markets, forces them to buy at high valuations, compromise on quality
Small-cap index still down 17% YTD, even as Nifty50, mid-cap indices back in green.
Small cap funds have come under the spotlight after it is offering just over 28 per cent returns in the last three years as the returns on these funds are the highest in the equity segment
Mid-and-small-caps indexes have outperformed their large-cap peers in July so far. So what is attracting investors to these two market segments, and will this outperformance last?
The mid-and small-cap indices on the BSE cracked over 3% last week. While the overall nervousness in the market is a reason for the poor show, analysts say the trend may soon reverse on the bourses
Stocks like Godrej Property can surge 15 per cent, where as Navin Fluoro can easily jump another 10 per cent provided it consecutively closes above Rs 4250
Tata Communications has broken the 200-day moving average (DMA) suggesting weakness in the coming days.
Avoid going overweight on these categories as they see sharper declines than large-cap funds during corrections
When selecting an index fund, pay attention to fee and tracking error
Move money out of smallcaps to large caps, even as concerns over lofty valuations and likely correction weigh
The Nifty IT index jumped 3 per cent and ended around record high levels of 32,245.