Mid- and small-cap stocks are buzzing once again. During the last week, the Bombay Stock Exchange (BSE) mid-cap index, comprising 268 stocks, breached its May 2006 level of 6,004 and reached a high of 6,186. Since the beginning of the year, the index has gained 6% as much as Sensex, which is the barometer of 30 large-cap stocks. But not all the mid-cap stocks have breached their last year’s high levels—so those who invested at those levels, still don’t have reason to cheer. Of the 268 stocks, 139 are still quoting below their 52-week price high that was reached in May 2006 or earlier.
Within the small-cap universe as represented by 468 stocks in BSE small-cap index, almost half of them haven’t yet breached their 52-week high level of May 2006. Although the index has rallied by 10% since the start of the year to reach 7,651, it’s still not near the all-time high of 7,812 reached in May 2006.