The returns on the stocks of domestic small and medium companies have been the highest compared to other companies and indexes of their category across the world. This growth is continuing even when pressure is being seen in the domestic markets and the Nifty index has fallen 7 percent from its upper levels. Currently, the impact of high valuations, Middle East crisis, quarterly results is being seen in the domestic markets. However, amidst all this, investors in midcap and smallcap index are making profits.
According to Bloomberg data, the FTSE Global Midcap Index has grown 12 per cent and the FTSE Global Smallcap Index has grown 9.3 per cent so far in the year 2024. At the same time, the FTSE Global India Smallcap Index has seen a gain of 25.2 per cent during this period. At the same time, the Nifty Midcap Index has grown 25.7 per cent and the Nifty Smallcap Index has grown 26.7 per cent during the same period. The FTSE Global Mid and Smallcap Index includes mid-cap and smallcap listed companies from around the world. Not only this, the index of domestic small companies has been better than the returns of mid and small cap indices around the world. As against the gain of over 26 per cent in the Nifty Midcap and Smallcap indices, the FTSE Germany Midcap Index has given a return of over 20 per cent so far in the year 2024. The FTSE South Africa Midcap Index has risen by 14.6 percent, the FTSE Japan Midcap Index by 10.7 percent, the FTSE Global South Africa Smallcap by 20.2 percent, the FTSE Global Taiwan Smallcap Index by 12.1 percent and the FTSE Greater China Smallcap Index by 6.5 percent. However, analysts are asking investors to be cautious about the growth estimates in small and medium companies. According to them, in case of pressure in the results, the ongoing rally in the stock with the help of high liquidity in the market can be affected.
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