Small Pays Off Big

Great things often start small, and the equity market is no exception. In 1981, Infosys was founded by a group of seven entrepreneurs with a modest capital investment of just `10,000. This serves as a testament to the potential for growth and success that small companies possess. There are numerous similar stories of companies starting small, often from humble beginnings in nondescript locations, and eventually making a big impact in the stock market. Interestingly, Small-Cap stocks often go through cycles of investor favour that may not align with the frontline market sentiment. While discussions about the health of the equity market typically revolve around the Nifty 50 or Sensex, it is important to recognise that the fortunes of small-cap stocks can differ significantly.