look news india
In the current financial year, the small-cap and mid-cap of the Bombay Stock Exchange (BSE) have gained 12.89 per cent and 12.18 per cent respectively. In comparison, the Sensex has gained four per cent during this period. Fearing bubble-like appreciation in small and midcap stocks, market analysts believe that investors should move from this segment to largecaps. Since this growth is not in line with the current market situation, the bubble of sharp rise in small and midcap stocks can burst anytime due to high liquidity. Therefore, profit booking should be done.
Last March, Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), had warned that there could be bubble-like growth in this sector which could harm investors. Then again, there has been a tremendous boom in this segment. Which shows that despite the warning of the market regulator, investors' irrational enthusiasm in this risky sector continues.
On the other hand, other market experts believe that this is definitely a bullish time, so small-cap and mid-cap investors should not sell their stocks. Just be aware that the investment entry level in this sector is currently very high.
