Last week the BSE Small-cap Index touched a new high, crossing the 20,000 mark. Over the past year, small-cap stocks have rallied strongly, with this index giving a return of 53.22 per cent.
However, valuations within this space have now risen to exorbitant levels. The Nifty Free Float Small-cap 100 Index is currently trading at a 12-month trailing price-to-earnings (P/E) ratio of 199.1, according to Bloomberg — almost four times the 10-year average P/E of 51.8. For investors investing either directly or via mutual funds, it is clearly time to take steps to safeguard ...
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First Published: Thu, January 18 2018. 03:02 IST
