Even as 70% of the stocks in the BSE Sensex, BSE Midcap, and BSE Smallcap indices have delivered positive returns during the current calendar year, a significant number — approximately 325 — are grappling to remain above water. With a fall of nearly 68% so far, Fusion Micro Finance declined the most in the BSE Smallcap index in 2024. Shares of the company tanked to Rs 186.
75 on December 13, 2024, from Rs 576 on December 29, 2023. Spandana Sphoorty Financial and Filatex Fashions also declined nearly 67% each during the same period. In the smallcap space, HMA Agro Industries, GVK Power & Infrastructure, Kamdhenu Ventures, and India Pesticides also retreated 51%, 50%, 48%, and 47%, respectively, year-to-date.
On the other hand, the BSE Smallcap index gained 33.5% YTD. So, what should investors do currently? Global financial services firm HSBC said, “We prefer Indian large caps over small- and mid-caps due to their relatively attractive valuations and better earnings profile.
” In the BSE Midcap index, which has gained 30% YTD, Zee Entertainment Enterprises slipped nearly 52% YTD. Aarti Industries, Bandhan Bank, Relaxo Footwears, IDBI First bank and AU Small Finance Bank also lost over 25% in the ongoing calendar year till December 13. Overall, 2024 turned highly volatile for the domestic equity market from October onwards.
The NSE Nifty and BSE Sensex peaked in September before sharply correcting in October and November this year. This turbulence was driven by global econ.
