March silences naysayers as 186 smallcaps gain up to 74%. Will this last?
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As Indian equity markets entered the month of March, the only question that was in the minds of investors was "how worse is it going to get?" But it was a sweet surprise for many, as stocks bounced back strongly from the lows, a recovery that was broad-based and much faster than expected. During March, the BSE Smallcap 250 index, which is a gauge of smallcap stocks, gained nearly 9%. This came after months of decline that started in October last year. The fall was very steep for some of these stocks before March. For instance, 145 stocks slipped between 25-66% in just one month of February. In a complete contrast in March, 86 smallcaps surged at least 20% or more, while 297 of them gained in double-digits. Further, nearly 29 stocks delivered returns of over 30%. NACL Industries, Power Mech Projects and SML Isuzu were the top gainers in the pack with a return of 74%. The declines, on the other hand, were only a handful. This rall...