The small-cap index barely matched the 2022 large-cap barometer, the Nifty50. But 2023 could be different. Valuations on the small-cap index still look a little high compared to historical valuations, but analysts expect him to rebound in 2023. It is based on historical return trends.
Since 2005, the Nifty Smallcap100 has had only five negative returns. Swastika Invest Mart’s managing director Sunil Nyati said he had a return of more than 20% the following year, except for his one deal in 2019.
In 2022, the Nifty Smallcap 100 Index is down 13% while the Nifty50 is up 4%.
Vinod Nair of Geojit Financial Services noted that the Nifty Smallcap100 1-year futures P/E is trading at 16.5x, well softened from its high of 24x, and looks attractive.
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