As benchmark indices trade strong, small cap index also saw a stellar rally in intra-day trade on September 14, 2020, rising over 4%.
This is after the market watchdog SEBI modified rules per se multi-cap mutual fund schemes. The ruling may give a push in demand to stocks from these space but individual investors need to be wary of the company's balance sheet strength as well as earnings visibility.
"Initially, given the radical rejig, potentially the entire smallcap universe may see a sharp rally," said Aditya Narain, head of research for institutional equities at Edelweiss Securities.
Among individual stocks, Multi Commodity Exchange of India, Syngene International, City Union Bank, Galaxy Surfactants, APL Apollo Tubes, Astrazencea Pharma India, Kajaria Ceramics and Blue Star from the S&P BSE Smallcap index rallied over 10 per cent.
BSE Small Cap index that hit 52-week high today
1. Tata Elxsi
2. Ramco Systems
3. Adani Green Energy
4. FirstSource Solutions
5. Laurus Labs