Why Small-Cap Stocks Have High Volatility?
Small-Caps = High Fluctuation
– Price swings are sharper and frequent.
– Influenced by sentiment more than fundamentals.
Low Liquidity
– Low trading volume causes price gaps.
– Even small news triggers big reactions.
Data Patterns
– Few FII/DII holdings = unstable support.
– Retail-driven momentum fades fast.
Business Instability
– Earnings aren’t consistent.
– Many are in early or recovery phases.
Investment Insights
– Early-stage industry with massive long-term potential.
– Backed by global & Indian government incentives.