Small Caps and Mid Caps perform better then SENSEX

(20/5/09 - SENSEX updates) - The mid-cap and small-cap indices today significantly outperformed the benchmark index Sensex with as many as 117 small-cap stocks and 14 mid-cap stocks touching their upper circuit limits at the Bombay Stock Exchange.

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The BSE mid-cap index gained over six per cent to settle at 4,673 points, while the small-cap index ended up 8.86 per cent at 5,208.18 points.

According to the data available on the BSE website, as many as 117 stocks from the 465 shares in the small-cap index and 14 stocks out of the total of 221 shares in the mid-cap index hit their respective upper circuit limits today.

"Investors are making value buys into midcaps and small-cap stocks which have turned attractive, while the blue chip stocks became overbought and witnessed profit booking today," Geojit BNP Paribas Financial Services Research head Alex Mathew said.

The 30-share bellwether index Sensex today lost 241 points to close at 14,060, after touching an intra-day high of 14,405.51.

Some of the mid-cap shares which surged and got struck in their upper limit include --realty firm Omaxe (gained 20 per cent), Godrej Industries (10 per cent), Akruti City (5 per cent), Indiabulls (5 per cent) and KEC International (10 per cent).

The mid-cap and small-cap indice track the performance of companies with relatively smaller market capitalisation than the blue chip firms.

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The circuit limits, both upper and lower, are set by the exchange from time to time as a price containment measure beyond which trading would not be allowed in a scrip till the prices are normal or limits are reset.

The circuit limits in stocks are set for a particular scrip by the exchange to limit their movement to five per cent, 10 per cent and 20 per cent, either up or down.

The circuit limits are set to regulate manipulative or one way price drugging of particular shares mainly having smaller marketcaps.

The small-cap stocks which hit their upper circuit limits include- Raymond Ltd , Unity Infra, Bharati Shipyard, Madhucon Projects and United Breweries Holdings.