Active Stocks
Mon May 27 2024 15:59:11
  1. Tata Steel share price
  2. 175.50 0.40%
  1. NTPC share price
  2. 369.60 -1.40%
  1. State Bank Of India share price
  2. 834.10 0.66%
  1. HDFC Bank share price
  2. 1,527.95 0.75%
  1. ICICI Bank share price
  2. 1,129.15 -0.19%
Business News/ Markets / BSE SME IPO index stages a remarkable recovery to scale new highs in April
BackBack

BSE SME IPO index stages a remarkable recovery to scale new highs in April

The BSE SME IPO index's strong performance in April comes after a volatile start to the year

The BSE SME IPO index had plunged 11.2% in March.Premium
The BSE SME IPO index had plunged 11.2% in March.

MUMBAI:The BSE SME IPO index scaled a record high of 65,148.53 points on Tuesday, lifting its market capitalization to 1.55 trillion and marking a significant resurgence from the slump witnessed in March.

The BSE SME IPO index had plunged 11.2% after Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India, raised concerns regarding the stretched valuations of smallcap and midcap stocks.

Market experts warned that investors should not get caught up in the exuberance of the stock market.  

“Considering high volatility, investors should book profits at regular intervals and ensure that they are not caught up in the valuation froth," said Divam Sharma, founder and fund manager at Green Portfolio.

Also read: A blip, not a trend: Smallcaps remain the flavour despite recent shift

Bondada Engineering Ltd was the biggest contributor to the latest rally in the BSE SME IPO index, accounting for an impressive 22.8% of the rise so far this year. 

Other significant contributors include KP Green Engineering (12.4%), Insolation Energy (8%), Meson Valves India (7.5%), Cosmic Crf (5.6%),CFF Fluid Control (5.3%) Khazanchi Jewellers (5%), PNGS Gargi Fashion Jewellery (4.9%), Amic Forging (4.8%),  and Veefin Solutions Ltd (4.2%).

“SME index has overall done exceptionally well with companies being able to raise money and some interesting business models coming in with listings and attracting capital," said Sharma.

“We see investment opportunities in the space but the investors have to be very specific and choosy," he cautioned. "Company fundamentals, business models, corporate governance, etc., have to be carefully evaluated."

The BSE SME IPO index's strong performance in April comes after a volatile start to the year. In March, the index had fallen from 59,395.21 points to 52,725.41. 

It has, however, staged a remarkable recovery in April, surging 19% and reaching an all-time high, suggesting that investor confidence in the SME sector is returning.

On Tuesday, the wider benchmark Sensex index closed at 73,738.44, up 89.82 points.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

ABOUT THE AUTHOR
Mayur Bhalerao
"Mayur spearheads data-driven reporting on IPOs for Mint. He also covers market trends, and corporate announcements to ensure comprehensive coverage of the financial landscape. Mayur believes in harnessing the power of Bloomberg Terminal and Capital Line to extract and disseminate critical financial data to cross-functional teams within the newsroom and beyond. disseminate critical financial data to cross-functional teams within the newsroom and beyond."
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 23 Apr 2024, 10:36 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started