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Showing posts from December, 2014

On The Radar: India's Small-Cap Equities (Concluded)

We have been running a series of articles titled ‘Under The Radar: India’s Small-Cap Equities’ beginning in December 2011 - and followed up twice - with the last article in December 2013.
We would like to conclude this series after updating the small-cap index level and returns, comparing it to our expectations ex-ante, and analysing the current scenario.  Following this, we have also outlined where we may take this blog in the future.
The small-cap index closed at 11,087.07 on December 31st, 2014.  This compares to a level of 6,150.65 in our last article – resulting in an advance of over 80% to date.
This is a handsome absolute return by any standard, particularly compared to Indian government bonds, which yielded around 8-9% for the period. 
This justifies the conclusion at the end of our previous article that “small-caps in India offer among the most attractive bargains during any time since 2006 and certainly in the entire Indian stock market today”.
Of course external events have pla…