BSE Small Cap index: ADAG Group Trio, SREI Infra and HCL Insys double in one month

Smallcaps are seen outperforming the frontline indices and investors have shown an increasing appetite to invest in them as the prices soar for the small caps.

BSE Small-cap index is up ~37 per cent on YTD basis while BSE Sensex has gained nearly 10 per cent in 2021. Smallcaps are seen outperforming the frontline indices and investors have shown an increasing appetite to invest in them as the prices soar for the small caps.

The rally in small cap stocks is a global phenomenon not restricted to Indian market with S&P 2000 index turning out to outperform the blue-chip Dow Jones Industrial Average (DJIA), S&P 500 and tech-heavy NASDAQ composite in 2021.

Amongst the constituents of BSE Small Cap index we find that at least six small cap stock shave managed to double in one month alone. What is interesting to note is the fact that out of the six small caps that doubled in one month – 3 belong to ADAG group. The ADAG trio of Reliance Communications, Reliance Capital and Reliance Power dominate the list of top small cap gainers of BSE Small Cap index.

SREI Infra and HCL Infosystems are the only other BSE Small Cap index constituents that have more than doubled in past one month. What is interesting to also note is all of these stocks are penny stocks i.e trading below Rs 20 per share; except Reliance capital that is trading at Rs 29.85 per share on Wednesday. While 5 penny stocks out of 6 doubled; as many as 17 small cap stocks gained more than 50 per cent in just one month as on 22nd of June, 2021.

Following is the list of Top Smallcap gainer from the BSE SmallCap index :-