BSE Smallcap Index Trailed Benchmark Sensex
The BSE Smallcap index was trailing benchmark Sensex in morning trade on Thursday.
The BSE Smallcap index was trading 0.08 per cent down at 17,334, while Sensex was 0.29 per cent up at 35,007 around 10:45 am. The Nifty50 index was 0.28 per cent up at 10,645 around the same time.
Shankara Building Products (down 18.77 per cent) was the top loser in the smallcap index.
Many of the veteran analysts are bullish on domestic smallcap stocks.
However, the Sensex has returned 12-12.5 per cent ever since 2014. It is observed that the smallcap stocks have climbed 45 per cent compounded annually during the period.
Analysts also explained that this kind of return divergence has never happened in the history of India. They continue to believe that divergence will persist. Right now, our country is not in a bear market. The analysts also went on saying that this is just that relatively India will probably lag EMs and will lag global equities.