Share markets in India continued their momentum during closing hours and ended the day on a positive note. Sectoral indices were trading on a positive note with stocks in the IT sector and finance sector leading the gains.
At the closing bell, the BSE Sensex stood higher by 551 points (up 1.6%) and the NSE Nifty closed up by 188 points (up 1.8%). The BSE Mid Cap index ended the day up 1.6%, while the BSE Small Cap index ended the day up by 1.4%.
The rupee was trading at Rs 73.93 against the US$.
Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up by 1.6% and the Shanghai Composite was up by 1.3%. The Nikkei 225 was up by 2.1%. European markets were also trading on a positive note. The FTSE 100 was up by 1.3%. The DAX was up by 1%, and the CAC 40 was up by 1.8%.
Small cap stocks are witnessing buying interest today with the BSE Smallcap Index trading up by 1.4% at the time of writing. Stocks such as Munjal Auto, DB Realty, and Dhanlaxmi Bank are the top gainers in the index.
It’s also interesting to see how the BSE Smallcap index has performed during the years. Have a look at the chart below:
The Smallcap Index Is Up Merely 1% from Its 2008 Top
On 7 January 2008, at the height of the previous bull run, the Smallcap index hit a high of 13,975. In the market crash that followed, the index hit a low of 2,867 on 9 March 2009. In other words, the Smallcap index tanked a whopping 79%!
Ankit Shah shares an interesting observation around this data. Here’s him in a recent edition of The 5 Minute WrapUp…
But here’s the most telling observation…
From its January 2008 peak to now, the BSE SmallCap index has gained just 0.8%.
If you factor in inflation, the returns are actually negative.
In other words, investors who bought smallcap stocks at market peaks and didn’t go bargain hunting in the subsequent crashes didn’t make any money.
