BSE small-cap gives 72 pc return, Sensex 34 pc in 3 yrs

Mumbai: With 72 per cent return to investors, S&P BSE SmallCap index has outperformed the Sensex and large-cap indices in the three-year period ended May 31.

While the small-cap index of the BSE has given a return of 72.11 per cent, S&P BSE SmallCap Select index, which is a measure of the performance of the 60 most liquid small-cap companies, has generated a return of 66.86 per cent, as per data compiled by S&P Dow Jones Indices for a period of three years ended May 31, 2017.

On the other hand, blue-chip index Sensex and S&P BSE LargeCap companies have shelled out a return of 34.24 per cent and 38.56 per cent, respectively, in the period under review.

"We see that in the three-year period ending May 31, 2017, the absolute returns of the S&P BSE SmallCap and S&P BSE SmallCap select were significantly higher than those of the S&P BSE LargeCap and S&P BSE Sensex," S&P BSE Indices Associate Director (product management) Ved Malla told PTI.

"This significant out performance by small-cap stocks has resulted in more market participants looking at the small-cap segment," he added.

Small-cap indices have also outperformed the large cap companies over one year period ended May 31, delivering a return of 36.22 per cent. S&P BSE SmallCap select generated a return of 30.89 per cent for its investors.

Comparatively, large-cap has given a return of 20.78 per cent, while Sensex companies shelled out 18.22 per cent return for the one-year period.

Similarly, investors received a return of 36.10 per cent and 26.03 per cent from S&P BSE SmallCap and Smallcap select indices, respectively, over two-year period ended May 31, 2017.

This is much higher returns from BSE LargeCap (17.51 per cent) and benchmark BSE Sensex (15.14 per cent).

In terms of market capitalisation, small-cap index on BSE has scaled up by 36 per cent, while the value of large-cap companies increased by 24 per cent -- much lower than small cap indices, in the one-year period ended May 31, 2017.

According to Malla, there has been a paradigm shift in investment patterns as market participants are now going beyond traditional large-cap companies and venturing into companies in the mid-cap and small-cap segments.

S&P Dow Jones Indices is a global leader in providing investable and benchmark indices to the financial markets.