Based on seasonality trends, here are top three small-cap stocks to watch out for in December!

Here are the top three small-cap stocks to watch out for in December

The month of November turned out to be a historic month for the Indian benchmark indices as the frontline indices marked a fresh all-time high after a span of 13-months.   

The Nifty shot up more than 100 points on the final trading session in the month of November and recorded a fresh high of 18,816. For the month of November, Nifty and Sensex jumped more than 5 per cent. Talking about the performance of the broader markets for the same period, the Midcap and Smallcap index added 3.61 and 2.66 per cent, respectively.   

In the BSE Small Cap Index, Rail Vikas was the top performing stock with gains of over 82 per cent, on the other hand, Nureca was the top loser as it lost over 35 per cent in November. Talking about the advance decline ratio nearly 540 stocks advanced and 418 stocks declined in November from the BSE Small Cap Index.   

Going ahead, the BSE Small Cap Index has to be on the radar of market participant as historically, the month of December has been one of the best months for the Small Cap Index, as on an average in this month BSE Small Cap Index has jumped 4.6 per cent and data has been considered since the year 2005.   

Considering the robust performance historically from the BSE Small Cap Index in the month of December, we expect Small Cap stocks to deliver handsome returns and hence, we have chalked down a list of three stocks, which you can keep on your radar.   

Here are the top three Small-Cap stocks to watch out for in December:  

Birlasoft: As history suggests, the stock, on average, delivered gains of 11.3 per cent with a positivity rate of 90 per cent in the month of December as out of 20 times, it has ended in green on 18 instances. Interestingly, the stock has witnessed nine consecutive positive years. Hence, keep a close watch on this stock.      

Automotive Stampings and Assemblies: Historically, December has been excellent for this stock as out of 20, it managed to deliver positive returns on 17 instances thereby, resulting in a 85 per cent positivity rate. Moreover, the average gains registered by this stock in December are 25 per cent while the cherry on top is that its maximum returns for the month of December stand at an eye-popping 206.7 per cent.    

Punjab Chemicals & Crop Protection: If history is to be believed, then it is likely that the stock might deliver robust performance in December as it has closed positively 17 out of the 20 times in the past. The stock’s average return in December is 15.66 per cent and what’s striking is the fact that it has witnessed nine consecutive positive years.   

Which stock is on your radar for the month of December, share with us in the comment section.