Why can small caps still keep rising?
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The current rally in smallcap space is too strong. If you look at BSE Smallcap Index, it started rising from 29 Mar 2023. Till now, it never has touched 20EMA once. It is not even taking minor corrections to take some rest.
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The current PE ratio is 27 which is not too high from the perspective of smallcap index. It was trading at 114 PE in Jan 2018 peak. Maybe there is still time before we see some heavy correction.
Reasons to worry:
- The AMCs have stopped taking money. They are running out of ideas to invest in.
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