Stock market today: The S&P BSE SmallCap index has fallen over 4 per cent from its all-time high of 46,821.39, hit on February 7, while the S&P BSE Midcap index has been hovering around all-time highs.
Stock market today: The SMID (small and midcap) stocks, which came under the scanner after market regulator Sebi in February flagged froth in the segment, have seen bouts of volatility. The small-cap index has seen some corrections since then.
The S&P BSE SmallCap index has fallen over 4 per cent from its all-time high of 46,821.39, hit on February 7, while the S&P BSE Midcap index has been hovering around all-time highs.
Does the ‘bubble’ still exist in broader market?
Diwakar Rana, Senior Equity Research Analyst at Prudent Equity, says that froth still exists in certain parts of the market.
“The increase in mid- and small-cap IPOs and the low liquidity have contributed to the bubble in small and mid-cap stocks, particularly in the SME sector,” said Rana.