Indian Penny Stock Boom Seen Resuming After August Hiatus: Chart

(Bloomberg) -- India’s small-cap stocks are likely to regain momentum after having their worst month relative to bigger names since 2018, according to Nagaraj Shetti, a technical analyst with HDFC Securities. That’s because most of the shift in demand from the S&P BSE Small Cap Index to the benchmark S&P BSE Sensex was concentrated in a handful of blue-chip shares amid concerns over regulatory action on so-called penny stocks, he said. The small-cap gauge outperformed the Sensex by 0.6 percentage points on the first day of trading in September.

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