Nifty Smallcap 100 touches new record high, gains over 2.4% in 3 sessions – here's why
Also Read: Axis Bank, Hindustan Unilever, among 23 companies to report Q4 results today The recent uptrend in Indian equities has been attributed to favorable global cues and a decline in crude oil prices, with the oil market seemingly unaffected by the potential impact of additional sanctions on Iranian oil. Moreover, concerns have eased as both Iran and Israel have indicated a reluctance to escalate tensions further, following limited exchanges of strikes earlier this month. In March, small-cap stocks suffered as concerns over high valuations prompted regulatory scrutiny, leading mutual fund houses to conduct stress tests every 15 days.
In April, it has shown a significant recovery, with a return of 9.79% thus far. Retail investors have been focusing on mid-and small-cap stocks in their portfolios, seeking multibagger returns, as the likelihood of large-cap stocks delivering such returns is comparatively lower due to their established market positions and elevated valuations. In FY24, the Nifty Smallcap 100 index surged by 76.15%.
Over 12 months, the index ended on a positive note in 10 months, with November seeing the highest monthly increase of 12%. Notably, the index sustained an average return of 5% during these 10 months. Meanwhile, the U.S.
manufacturing activity dipped to a four-month low of 49.9 in April, as reported by the S&P Global Flash U.S. Composite PMI, signaling contraction when below 50. Also Read: Business activity grew at fastest pace in 14 years in April, HSBC survey shows This has bolstered optimism for a rate cut by the US Fed.
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