Stock Exchange (BSE) in India. It includes companies that fall outside the BSE LargeCap and BSE MidCap indices, making it a benchmark for small-sized businesses in the stock market.
Key Features of the S&P BSE SmallCap Index
- Covers Small-Cap Stocks: It represents companies with relatively smaller market capitalization compared to large and mid-cap firms.
- High Volatility: Small-cap stocks tend to be more volatile than large-cap stocks, meaning they can deliver higher returns but also come with higher risk.
- Diversified Sectors: The index includes companies from various industries such as pharmaceuticals, IT, manufacturing, real estate, and finance.
- Growth Potential: Many small-cap stocks have strong growth potential, as they are in their early stages and can expand rapidly.
Factors Influencing the S&P BSE SmallCap Index
- Market Sentiment: Since small-cap stocks are sensitive to investor sentiment, they often experience large price swings.
- Economic Conditions: A growing economy benefits small businesses, while an economic downturn can hit them harder.
- Liquidity: Small-cap stocks typically have lower liquidity than large-cap stocks, meaning fewer shares are traded daily.
- Interest Rates: Higher interest rates can increase borrowing costs for small businesses, affecting their performance.
Why Investors Track the S&P BSE SmallCap?
- For High Growth Opportunities: Small-cap stocks can offer significant returns over the long term.
- For Portfolio Diversification: Investors use small caps to diversify their investments beyond large and mid-cap stocks.
- For Market Trends: The index helps understand broader trends in the small-cap segment.
Recent Performance
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