2009 turned out to be a year when stock market minnows beat the big fish of Dalal Street, as mid-cap and small-cap shares outperformed blue chips, setting the momentum for 2010.
Although the stock market saw a recovery across the board in the year, the stocks of companies with medium and small market capitalisations shot up more significantly than the scrips with larger valuations.
Analysts said the smaller capitalisation stocks do not need huge amounts of investments to rally and thus managed to outperform their peers in the benchmark index Sensex in the year.
According to an analysis of the performance of mid-cap and small cap indices on the Bombay Stock Exchange, the small-cap index has given a return of as much as 115 per cent, while the mid-cap index has gained nearly 100 per cent so far in 2009.
In comparison to the performance of its smaller peers, the 30-share bellwether index, Sensex, gave a return of 75.3 per cent to investors.
The mid-cap and small cap indices track the performance of companies with market capitalisations that are a fifth or tenth of that of blue chip firms.
{{/usCountry}}The mid-cap and small cap indices track the performance of companies with market capitalisations that are a fifth or tenth of that of blue chip firms.
{{/usCountry}}“The rally in the mid-cap and small-cap have been stronger than that of the large cap index of Sensex. Mid-cap and small-cap indices comprise stocks require relatively smaller investment as they are available at cheap rates in the market,” SMC Capitals Ltd Equity Head Jagannadham Thunuguntla said.