BSE MidCap, SmallCap indices trade 3% down as investors rush to book profits
Introduction:
BSE indices trade 3% down: Amit Jain, a co-founder of Ashika Global Family Office Services, claimed that small- and micro-cap stocks today appear to be overpriced in comparison to their future growth prospects.
Today’s stock market: The Midcap and Smallcap indices both reached new all-time highs early on Tuesday, reaching 33,245.85 and 38,769.33, respectively. But soon after, they experienced significant losses of up to 4%.
Amit Jain, a co-founder of Ashika Global Family Office Services, claimed that small- and micro-cap stocks today appear to be overpriced in comparison to their future growth prospects. In a hurry to book profits on September 12, the Bse Midcap and SmallCap indices defied the market rise and lost about 3 percent each. But many analysts anticipated an impending bull run.
BSE indices trade 3% down
BSE SmallCap dropped 3.1 percent to 37,351 points at 10.33am, while BSE MidCap shed 2.8 percent to 32,200 points. Both the BSE MidCap and SmallCap have increased by nearly 28 percent so far this year. Kotak Institutional Equities recently advised against a midcap portfolio due to the limited firms. Shows potential for a 12-month fair value growth, mostly in the BFSI sector.
The company also cautioned investors about the midcap and smallcap rallies. Despite the fact that most companies’ fundamentals are worsening, they blame the sharp price increases. Increaseson the irrational optimism of investors in these marketplaces.
The Smallcap index fell about 4%, while the Midcap index collapsed nearly 3% in Tuesday’s morning session, signaling the end of the dream run of mid and small-caps.
Global Family Office Services
Amit Jain, a co-founder of Ashika Global Family Office Services, claim small- and micro-cap stocks today appear overpriced. Claims by comparision to their future growth prospects. For instance, the PE ratio for the Nifty Micro Cap 250 is 33. The PE for the Nifty 50 is 22, and the PE for the Nifty 500 is 25. This implies that the majority of microcap stocks may not have a favourable risk-reward ratio. Consequently, those looking for quick profits.
In Tuesday’s trading, the Smallcap index sank to its intraday low of 36,931.57, down 4.16 percent from its previous close of 38,533.40, while the BSE Midcap index fell to an intraday low of 32,052.46, down 3.06 percent from its previous close of 33,064.96.
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