Monday, 12 June 2017

BSE small-cap gives 72% return while Sensex gives 34% in 3 yrs

On the other hand, blue-chip index Sensex and S&P BSE LargeCap companies have shelled out a return of 34.24 per cent and 38.56 per cent, respectively, in the period under review.

With 72 per cent return to investors, S&P BSE SmallCap index has outperformed the Sensex and large-cap indices in the three-year period ended May 31.

While the small-cap index of the Bombay Stock Exchange has given a return of 72.11 per cent, S&P BSE SmallCap Select index, which is a measure of the performance of the 60 most liquid small-cap companies, has generated a return of 66.86 per cent, as per data compiled by S&P Dow Jones Indices for a period of three years ended May 31, 2017.

On the other hand, blue-chip index Sensex and S&P BSE LargeCap companies have shelled out a return of 34.24 per cent and 38.56 per cent, respectively, in the period under review.

"We see that in the three-year period ending May 31, 2017, the absolute returns of the S&P BSE SmallCap and S&P BSE SmallCap Select were significantly higher than those of the S&P BSE LargeCap and S&P BSE LargeCap," S&P BSE Indices Associate Director (product management) Ved Malla told PTI.

"This significant outperformance by small-cap stocks has resulted in more market participants looking at the small-cap segment," he added.

Small-cap indices have also outperformed the large cap companies over one year period ended May 31, delivering a return of 36.22 per cent. S&P BSE SmallCap Select generated a return of 30.89 per cent for its investors.

Comparatively, large-cap has given a return of 20.78 per cent, while Sensex companies shelled out 18.22 per cent return for the one-year period.

Similarly, investors received a return of 36.10 per cent and 26.03 per cent from S&P BSE SmallCap and Smallcap Select indices, respectively, over two-year period which ended on May 31, 2017.

There were much higher returns from BSE LargeCap (17.51 per cent) and benchmark BSE Sensex (15.14 per cent).

In terms of market capitalisation, small-cap index on BSE has scaled up by 36 per cent, while the value of large-cap companies increased by 24 per cent -- much lower than small cap indices, in the one-year period ended May 31, 2017.

According to Malla, there has been a paradigm shift in investment patterns as market participants are now going beyond traditional large-cap companies and venturing into companies in the mid-cap and small-cap segments.

S&P Dow Jones Indices is a global leader in providing investable and benchmark indices to the financial markets.
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