May's Hidden Gems: Discover the Top 3 Small-Cap Stocks for May!

Brace yourself for this: the BSE Small-Cap index jumped over 10 per cent. Yes, you read that right - over 10 per cent!

Who would have thought that April would be such a spectacular month for the domestic equity markets? With chaos in the banking industry, fears of interest rate hikes, and geopolitical tensions all simmering in the background, the bear hug seemed set to continue. But, miraculously, sentiment turned for the good in the penultimate day of trading for the March month and it continued throughout the month of April, with only a bit of consolidation in the middle.

Incredible gains were made, with the Sensex advancing over 6 per cent. But hold onto your seats, folks, because that's not even the most exciting news. Brace yourself for this: the BSE Small-Cap index jumped over 10 per cent. Yes, you read that right - over 10 per cent!

With such a strong momentum in the BSE Small-cap index, there's a good chance that it will continue and become more stock-specific. That's why we've curated a list of stocks that might display outperformance in the month of December, based on the BSE Small-Cap index.

Now, here's the important bit: these stocks have been selected based on seasonality analysis, and we're about to reveal the top 3 stocks from the Small-cap index that you should keep an eye on in the month of May.

Balmer Lawrie Investments Ltd: The stock has delivered an average gain of 9.84 per cent with a positivity rate of 80 per cent as 16 times out of 20 times, the stock has ended in green in the month of May. So, the probability suggests that the stock may continue to deliver handsome returns in the May 2023 as well. With such high probability, it's definitely one to keep an eye on.

City Union Bank Ltd: This private sector bank has delivered double digit gains in the month of April. The seasonality trend suggests that the stock could continue its bullish trend as on average, it has delivered gains of 10.67 per cent with a positivity rate of 76 per cent as 16 times out of 21 times, the stock ended in green in the month of May.  

ADF Foods Ltd: The stock has been trading in a range and moreover, in the last month the stock registered modest gains, but seasonality suggests that May could be the month where the stock could change its gear as the stock has history of delivering robust returns in the month May. On an average the stock has delivered gain of 20.53 per cent with a positivity rate of 71.4 per cent as 15 times out of 21 times, the stock has ended in green in the month of May.