Government’s Capex Boosts Small-Caps

The cover story in the recent issue gave me a good outlook on the overall results in Q4FY23. However, how does the government’s emphasis on capex bode well for Small-Cap companies? - Pravin R

Editor Responds: We appreciate your kind words of encouragement. The government’s emphasis on capital expenditure (capex) holds promising implications for small-cap companies. By prioritising capex the government is actively investing in infrastructure development, public projects and other sectors. This increased spending creates a favourable environment for smallcap companies as it generates potential business opportunities. With their agility and ability to adapt quickly, small-cap companies can seize these opportunities and benefit from the increased demand for their products and services. 

Moreover, the revival of private capex further augments the prospects for small-cap companies. As private sector investments gain momentum, smallcap companies can anticipate a surge in order inflows, providing them with enhanced business visibility and growth potential. This alignment of government and private capex bodes well for small-cap companies, enabling them to thrive amidst global turmoil and capitalise on local economic strength. Keep writing to us with your queries.