BSE Smallcap index hits new high; analysts advise caution while investing

Shares of small-sized companies came back into action on Friday, with the S&P BSE Smallcap index hitting fresh record high of 15,759 on Friday, after a strong rally in oil exploration, auto ancillary and information technology (IT) stocks. The index surpassed its previous high of 15,750 hit on May 11, 2017 in intra-day trade. Aban Offshore, Hindustan Oil Exploration Company, Selan Exploration Technology and Deep Industries from oil exploration, Aptech, Aurionpro Solutions, NIIT Technologies, Rolta and Datamatics Global Services from IT were trading higher by 3% to 8% on BSE. At 10:11 am; the S&P BSE Smallcap index, the largest gainer among broader indices, was up 0.70% as compared to 0.65% rise in the S&P BSE Midcap index and 0.15% gain in the benchmark S&P BSE Sensex. Financial Astrology Tips




Around 18 stocks from the smallcap index include Asian Granito India, BASF India, Can Fin Homes, Century Plyboards, Federal Bank, GIC Housing Finance, Dewan Housing Finance and Motilal Oswal Financial Services hit their respective new highs today. Given the sharp rally, analysts now remain cautious on this space and prefer the large-cap segment. Any negative news, they say, can trigger a sharp fall in the market and the small-cap segment, in such a scenario they say, will be hit badly. "The valuations now appear stretched for the small-caps given the sharp rally. Any negative news can trigger a sharp correction. In such a scenario, investors should book partial profit in this segment and look for quality large-caps where earnings growth is visible," says Tirthankar Patnaik, India Strategist at Japan-based Mizuho Bank. Astrology and Numerology Trading Tips