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Small cap stocks underperform in trade

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New Delhi, March 4: Small cap stock indices are in the red on Monday amid concerns over exuberance in the space.

BSE Small Cap Index is down 0.68 per cent. BSE 250 Small Cap index is down 0.47 per cent. Small Cap Select Index is down 0.66 per cent.

The SEBI advisory to mutual funds regarding the excessive valuations in the mid and small cap schemes is likely to restrain the performance of the broader market, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. The irrational exuberance in the broader segment has no fundamental justification, he added.

In contrast, the benchmark BSE Sensex is trading flat. Small and mid cap indices have outperformed the benchmark indices for months now.

In contrast, power stocks are showing strong gains with the power index up more than 2 per cent. BHEL is up 13 per cent, NTPC is up 4 per cent, Tata Power is up 3 per cent, Powergrid is up 3 per cent.

PSU stocks are doing well with the index up more than 2 per cent.

 

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