BSE INDEX SMLCAP (SMLCAP) live share price today at BSE

The BSE Small Cap index reflects the sentiment of small-cap companies listed on the Indian Stock Market. It shows the total market cap from the bottom 15% of the BSE All Cap. The BSE Small Cap diversified into various sectors like Finance, Capital Goods, Healthcare, Chemical & Petrochemical, Housing Related, Transport Equipment, and many more. The top three sectors of the BSE Small Cap Index are Finance, Capital Goods, and Healthcare.

The index is used as a barometer for tracking the performance of the small-cap segment. The BSE Small Cap Index analyses the performance of 15% as per the total market cap. 

The impact of privately held shares does not affect the share price. The price of small-cap shares is highly volatile and changes frequently in response to shifts in market demand and supply. If investors want to determine the fair price and position of a stock, they should consider only those stocks that are available for trading in the market. The small-cap refers to the companies whose value is less than INR 5000 Cr. The reflection of the position of stocks in real-time keeps changing with the value of the index. 

The Bombay Stock Exchange launched the BSE Small Cap on April 11, 2005, with the base year of 2003 and a base value of 1000. The small-cap stocks provide high-growth potential to the investors, but are considered high-risk.

• The full Market capitalisation of the BSE Small Cap is ₹ 7,778,776.64, and the free-float market capitalisation is ₹3,226,107.68.
• The P/E Ratio of the fundamentals is 30.96, the P/B Ratio is 2.78, and the dividend yield is 0.65.
• The BSE Small Cap index is diversified into various sectors such as Finance, Capital Goods, Healthcare, Chemical& Petrochemical, Housing Related, Transport Equipment, and many more.
• The top three sectors of the BSE Small Cap are Finance, Capital Goods, and Healthcare.
• The weightage of the top three sectors is 16.63%, 14.35%, and 14.35%.
• The method of calculating the BSE Small-cap index is based on free-float market capitalisation.

• The ranking criteria of the stocks shall be based on full-market capitalisation included in the BSE universe.
• Companies are eligible for the BSE Small Cap if it fall under the segment of the top 250 companies by market cap.
•  The criteria given by the SEBI for the categorisation is that 1st to 1000 companies are considered as large cap, 101st to 250th companies fall under mid-cap, and 251st onwards are considered Small-cap companies.
• The stock shall be listed at least 3 months before inclusion on the BSE.
• Listed IPOs that meet the eligibility conditions earlier shall be included in the BSE Small Cap.
• The criteria for trading during the review period must be at least 75%.
•  Only freely traded shares shall be considered.

The calculation of the BSE Small Cap shall be based on the complete capitalisation method. The method of full capitalisation does not provide an accurate picture because, in this method, the shares which are held privately and the freely traded shares are both considered, so it does not present an accurate picture of the BSE Small Cap Index.

This was an issue for the investors, as it does not depict the true picture of the performance of the indices, so there was a need to introduce float-adjusted market capitalisation in 2003.

The first step for calculating the float-adjusted market capitalisation is to multiply the number of shares by the BSE Small Cap share price. The result of freely traded shares is then found, after which the market cap is multiplied by the percentage of tradable shares. The float-adjusted market cap is subsequently calculated.  

 Formula of BSE Small Cap = Total Free-Float Market Capitalisation/ Base Market Capitalisation*100.
 

• The small-cap companies expand much faster than the large-cap companies, which provides high potential returns to the investors as small-cap companies are in their early growth stage.
• The BSE Small Cap offers investors an opportunity for diversification, as it is diversified across multiple sectors, including real estate, consumer goods, and many more.
• The BSE Small Cap acts as a benchmark for small-cap mutual funds and ETFs, which makes it easier to track the performance. 

• The changes in the prices are widespread and fluctuate the market prices in the Small-Cap Companies more than the Large-Cap Companies.
• The chances of liquidity risks are higher in small-cap companies because it is considered very hard to buy and sell large quantities without affecting prices.
• The companies in the BSE Small Cap Index have limited financial resources, less stable earnings, and are highly dependent on market volatility.

Investors should research high-value stocks in the diversified sector of the BSE Small Cap Index, as companies with strong financials and high future profitability can provide long-term growth and stability. Investors should open a demat account for trading and also select a broker to choose the best BSE Small Cap stocks, which offer high potential for future growth. Or, when investing in the BSE Small Cap, the completion of KYC is necessary, which enables investors to choose the best stocks in the BSE Small Cap Index. On the platform of the brokerage, Investors can assess the Mutual Funds or ETFs. The investors can track the performance of the BSE Small Cap Index Stocks through their demat account. 

The BSE Small Cap index reflects the sentiment of small-cap companies listed on the Indian Stock Market. It shows the total market cap from the bottom 15% of the BSE All Cap. The BSE Small Cap diversified into various sectors like Finance, Capital Goods, Healthcare, Chemical & Petrochemical, Housing Related, Transport Equipment, and many more. The impact of privately held shares does not affect the share price. The price of small-cap shares is highly volatile and changes frequently in response to shifts in market demand and supply.

The small-cap refers to the companies whose value is less than INR 5000 Cr—the reflection of the position of stocks in real-time keeps changing with the value of the index. The Bombay Stock Exchange launched the BSE Small Cap on April 11, 2005, with the base year of 2003 and a base value of 1000. The small-cap stocks provide high-growth potential to the investors, but are considered high-risk.  The calculation of the BSE Small Cap shall be based on the complete capitalisation method. The method of full capitalisation does not provide an accurate picture because, in this method, the shares which are held privately and the freely traded shares are both considered, so it does not present an accurate picture of the BSE Small Cap Index.