Despite the Indian market experiencing a downward trend, retail investors have significantly increased their investments in small-cap stocks during the December quarter. Remarkably, some of these stocks have delivered impressive returns of up to 253% over the past six months.
Stocks like Kitex Garments, V2 Retail, and Indraprastha Medical saw a rise in retail investor holdings between October and December 2024. Over the last six months, these stocks have more than doubled the wealth of their investors.
Retail investors have also raised their stakes in several other stocks, including Pokarna, Lloyds Metals, Siyaram Silk Mills, Anant Raj, Precision Camshafts, and Authum Investments.
While these stocks have not delivered the triple-digit returns seen in top-performing picks, they have still provided gains exceeding 80% during this period. These investment decisions suggest that retail investors have remained committed to their selected stocks, even amid the market’s significant downturn.
How much did small and midcap stocks fall?
Over the past three months, the BSE Smallcap Index has dropped by 8%, while the Midcap Index has seen a 7% decline. This downturn is primarily attributed to factors such as foreign capital outflows, a slump in corporate earnings, and growing concerns about a potential recession in the domestic economy.
In January alone, foreign investors have pulled out over ₹50,000 crore from the Indian stock market. However, the rising involvement of retail investors in certain stocks does not necessarily guarantee that this upward trend will persist in the future.
Zomato Stock Plummets: ₹44,600 Crore Wiped Out in 3 Days – What Should Investors Do Now?