While many money managers have been advocating a shift in favour of midcaps, smallcaps too are getting a lot of attention. As against a 1 per cent rise in Nifty50 and 3.5 per cent gain for the Nifty Midcap index, the Nifty Smallcap index has risen over 6 per cent in last one month.
In today’s special podcast with independent market expert Rajiv Nagpal, we will try to understand the do’s and don’ts of investing in smallcaps.
Welcome to the show Mr Nagpal.
1) The party in smallcaps is getting louder with every passing day. What’s behind this exuberance?
2) What is the best way to hunt for stocks within the world of smallcaps? What are the red flags that one should be careful about?
3) Overall, what is your expectation from smaller companies in terms of earnings? If Q1 earnings disappoint, won’t the party get over sooner than later?
4) Given the high retail interest that we have seen in the market post-pandemic, how much of this rise in smallcaps is because of Robinhood investors? How risky is that segment because of high retail participation?
Thank you Mr Nagpal. That’s all in today’s special podcast but keep checking this space for more such interesting content. Good bye!