Exploring Potential in Small-Cap Stocks
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Letter to Editor, Letter to Editor
I found the concept of PSU awards in the last magazine edition fascinating. It helped me to discover some PSUs, which I wasn’t previously aware of.
I found the concept of PSU awards in the last magazine edition fascinating. It helped me to discover some PSUs, which I wasn’t previously aware of. On that note, I would like to know more about the prospects for Small-Cap stocks. Can you please explain? - Mayur Joshi
Editor Responds: We appreciate your kind words of encouragement. Smallcap stocks experienced a sharp decline following a warning from the SEBI chairperson regarding the presence of ‘froth’ in small-cap stocks, highlighting excessively high valuations within these segments. However, stocks swiftly rebounded from the sell-off pressure, recovering as quickly as they had fallen. Investors have consistently favoured small-cap stocks due to their significant growth potential. Although the BSE Small-cap Index has soared more than 55 per cent in the last year, reflecting optimistic investor sentiment, it has recently traded within a narrow and restricted range due to market fluctuations. Amid discussions predicting a market rally fuelled by hopes of a strong political mandate, attention may shift towards broader markets to seize potential opportunities in the near term.
Keep an eye on the Dalal Street Investment Journal for insights into seizing upon these promising investment opportunities.