BSE Small Cap Index: December Performance Unveiled

The BSE Small Cap index continues to capture investor attention with its steady performance. On Tuesday, December 3, 2024, it outperformed the Sensex, gaining nearly 1% compared to the Sensex’s 0.60% rise. This article dives into the historical performance of the BSE Small Cap index, focusing on December trends and key statistical insights.

Recent Performance Overview

The BSE Small Cap index gained nearly 1% on December 3, 2024, signalling its outperformance against the Sensex. Last week, it recorded its best performance in three weeks, gaining nearly 5%. Currently, the index trades at a PE multiple of 33.4, slightly below its 5-year average of 34.1, and aligns closely with its 1-year average PE.

December: A Month for Small Caps

Historically, December has been a favourable month for the BSE Small Cap index. Since 2005, the index has delivered positive returns in 75% of December instances.

• Best December Performance:

1. • In 2008, the index surged 26.81% in December and ended the year with a staggering annual return of 93.67%.

2. Second-Best December:

   • In 2020, the index gained 22.43% in December, marking a significant recovery year.

3. Recent Trends:

   • From 2020 to 2023, the index ended December in green every year except for 2022, which saw a modest decline of 2.01%.

Notable Lows:

The worst December performance occurred in 2011, with a 9% decline. That year was particularly challenging, as the index fell 42.61% overall.

PE Valuations

The current PE multiple of 33.4 indicates that the BSE Small Cap index is trading below its 3-months average PE multiple of 34.49.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.