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Sensex New Highs: Not for everyone

Posted by fairval on October 13, 2006

This isn’t perhaps new knowledge,but the new Sensex high isnt really a new high for the market. No other broad market index is at a high. Mid caps and Small caps havent really participated in this rally, and the difference is quite eye popping.
While the BSE Sensex is up 55% over 12 months, midcaps are up only 34% and smallcaps are up only 15%. BSE500, a representative of the broader market in India, has underperformed the Sensex by over 10%.
What will be interesting to watch is how does this divergence go in future – do the smaller guys rally, or do the large caps correct.


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