Smallcap index outperform Sensex, midcap second straight month

Shares of smallcap companies are on a roll and outperformed the large and midcap stocks for the second straight month.

The Bombay Stock Exchange (BSE) S&P BSE Smallcap index has gained 2.8% during the month of November as compared to 0.14% rise in S&P BSE Midcap index and 1.92% decline in the S&P BSE Sensex.

In October, the smallcap index rallied 2.7% against 1.9% rise in the benchmark and 1.6% gaiin in the midcap index.

One out of four stocks from the S&P BSE Smallcap index has rallied more than 10% during the month of November. 196 out of 770 stocks from smallcap index have gained more than 10%, of which 43 stocks surged more than 25% each. 

Minda Industries, Nelco, RPG Life Sciences, Parsvnath Developers and Godfrey Phillips zoomed between 50%-70%, while Subex, JMT Auto, SpiceJet, Gammon India, SQS India BFSI and Gammon India rallied in the range of 40%-50% during the month.

RPG Life Sciences was up 4.4% to Rs 311, after hitting a 52-week high of Rs 320 in early morning trade on the BSE. In the month of November, the stock surged 56% from Rs 200. According to media reports the company is charting out a plan to enter the skin care segment as a part of its strategy to move towards customer facing businesses. The company said that it is in the midst of developing the long term strategy and the news appeared is premature.

Parsvnath Developers too soared 51% from Rs 17.35 to Rs 26.15 during the month. The real estate developer said that promoter has bought shares of the company through open market. On November 18, 2015, Pradeep Kumar Jain, one of the promoter’s, has purchased 90,000 equity shares of the company via market purchase, Parsvnath Developers said in a BSE filing.

Shareholding of the reporting entity stands increased from 115.06 million shares to 115.15 million shares pursuant to the market purchase of 90,000 shares, it added.

About 32 stocks including Future Retail, Gayatri Projects, RPG Life Sciences, Vimta Labs, Sri Adhikari Brothers Television Network, Aegis Logistics, Garware-Wall Ropes, APL Apollo Tubes, Kwality, JK Paper, Nelco, Vivimed Labs and Mahindra Holidays Resorts hit their respective 52-week highs on the BSE today.