20,729: Fresh high hit by S&P BSE Smallcap Index.
- The S&P BSE Smallcap hit a record high of 20,729 in intraday trade on Tuesday.
- The index is up 140 per cent from its March lows. The Bull Run in small-cap stocks is likely to continue, according to market experts.
- Whenever economic recovery gathers steam, midcaps and smallcaps tend to rise more than largecaps.
- However, investors should be cautious when investing in smallcaps. As liquidity tends to be low, the entry or exit of even a small amount of money in a stock can cause large fluctuations in its price.
- Direct investors must check the corporate governance standards and management quality of the company they are investing in.
- Also, if the inherent quality of the business is not good, then such companies tend to correct heavily whenever there is a downturn in the markets.
A few links for further reading
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Quick approval, grace period
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