Small stocks lag behind in FY23, take bigger hit than bluechip firms

Small stocks have lagged behind the equity benchmark Sensex in 2022-23, falling nearly 6 per cent amid a host of negative factors like higher interest rate regime, high inflation and the Russian-Ukraine war. According to market analysts, it was a tumultuous year for the Indian equity market. The Russian-Ukraine war made the first quarter of the Indian equity market particularly difficult, but the second and third quarters witnessed a respectable rebound, they noted. Headwinds such as high inflation, the Russia-Ukraine war and higher interest rates hit investors' appetite for small stocks. With just one day of trading left in the current fiscal, the BSE smallcap gauge has fallen by 1,616.93 points or 5.73 per cent so far in 2022-23. The midcap index is down 270.29 points or 1.12 per cent in the 2022-23 financial year. In comparison, the BSE Sensex has declined 608.42 points or 1.03 per cent. "Many factors contributed to the underperformance of the Indian stock market in FY23. The

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