Time to bet hard on small caps, says Basant Maheshwari

Basant Maheshwari announced on twitter the launch of the new scheme and said they will be investing ₹5 lakh every month in it. He also stressed upon the small cap investment being the right choice in the current scenario.

“The enhanced liquidity flow carries the power to move the small caps a great deal over when compared to their larger peers. You need less horse power to pull a cart than to push a truck ! Smaller capitalised companies …” he said in a tweet over the weekend.

He even conducted a twitter poll on what is an ideal number of stocks that should be included in a small cap smallcase. The poll result indicated that the smallcase should have about 12-15 stocks.

Basant Maheshwari announced that the ‘BM Small Cap Secular Growth smallcase’ will consist of 15 stocks related to consumers, financials, capital goods, construction and real estate.

In the past week, the Indian market threw a treat for the investors when the benchmark indices – Nifty and Sensex – hit a high on November 24 on dovish US Federal Reserve minutes. While the rally was largely driven by large-cap stocks, banking, IT and PSU companies saw the highest gains.

In the week gone by, NSE Nifty touched new high of 18,534, Sensex hit life-time high of 62,447 whereas Bank Nifty climbed to new high of 43,339 mark.

The midcap and smallcap stocks saw a a relative underperformance last week, but a buying interest was witnessed in the broader markets, too, towards the end of the week. Experts suggest this could be initial signs of a broad market participation where in smaller and midcap stocks could also see an up move.

Meanwhile, BSE midcap opened 0.74% higher at ₹25783.47 on Monday. Whereas, BSE SmallCap were trading 0.62% higher at ₹29,384.