Big Downfalls For Small-caps

If you thought that the BSE Mid-cap Index’s fall of 5.3 per cent in the month of May, 2008 was bad news, then wait till you hear about this. The BSE Small-cap Index was the worst hit, falling by 7 per cent. Well, in such depressing times, it would be interesting to know what the fund managers did with the small-cap stocks. Value Research’s small-cap universe is made up of companies that account for 10 per cent of the total market capitalization. As on 31st May, 2008, there were 492 small-cap stocks. The major purchases in the small-cap space during the month were Reliance Industrial Infrastructure, Zee News, IBN 18 Broadcast and NIIT Technologies. The pack was lead by Reliance Industrial Infrastructure with 26 funds adding it to their portfolios. Zee News was taken up by six funds while IBN 18 Broadcast and NIIT Technologi