Nifty50: ETMarkets Investors’ Guide: How to find the right smallcap stock for your portfolio?

If you think Nifty hitting a new record high even as the country is still grappling with the impact of the second wave of Covid-19 is too much of an exuberance, just look at the midcap and smallcap indices. On a year-to-date basis, Nifty Smallcap index has given 3 times more returns than Nifty. Against Nifty’s 10% jump so far in the calendar year, the midcap index is up 23% and smallcap index 31%.

In today’s special podcast with independent market expert Rajiv Nagpal, we try to understand valuations in both the index and the broader market and hunt for money-making opportunities in the world of smallcaps.

Listen in.

Welcome to the show Mr Nagpal.

1) How comfortable are you with Nifty’s valuation at this point? Is it scary given that some amount of earnings downgrade is expected in the first half of the current fiscal year?

2) In the broader market, some experts say that the rally could be driven more by liquidity in the hands of retail investors than just fundamentals. Your thoughts on this please.

3) Which sectors would you look at if you are hunting for stocks in the smallcap segment?

4) With smallcaps comes more volatility and risk. Do you think smallcap mutual funds can be a safer bet for retail investors?

Thank you Mr Nagpal. That’s all in today’s special podcast but keep checking this space for more such interesting content. Good bye!