Sensex ends over 224 points; These 10 small caps gave return from 10% to 20% today, have you invested?

It was a good trading session for both Sensex and Nifty 50 benchmark indices, as they finished on a strong positive note today. The Sensex completed at 38,242.81 above 224.50 points or 0.59%, whereas the Nifty 50 ended at 11,536.90 up by 59.95 points or 0.52%. While markets were at booming stage today, there were list of 10 small cap stocks who gave even more returns to their investors in a single day ranging from over 10% to nearly 20%. The S&P BSE SmallCap finished at 16,804.22 higher by 76.46 points or 0.46%.

On the BSE SmallCap Index, there were three companies who gave nearly 20% return today with Centum Electronics taking the lead by touching intraday high of Rs 408.15 per piece which resulted in a gain of 19.99% before ending at Rs 407.55 per piece above 19.81%.

This was followed by Star Paper Mills and Nandan Denim Limited who gained by 19.98% and 19.94% in overall trading session by touching intraday high of Rs 216.45 per piece and 93.2 per piece respectively. Both the stock ended at Rs 216 per piece and Rs 91.45 per piece up by 19.73% and 17.70% respectively on the index.

Going ahead government-owned Bharat Bijlee followed the above mentioned stocks by raising 18.24% overall on the index with an intraday high of Rs 1,587 per piece. The stock finally finished at Rs 1,549.20 per piece above 15.43%.

Other stocks that surged were Shree Rama Newsprint, Gujarat Borosil, AXISCADES Engineering, West Coast Paper Mills, Binani Industries and Power Mech Projects in the range of 10.34% to 11.13% on the index.

Why investing in small caps become feasible is because when the markets are at boom new investors cannot reap the benefit of such a trend and investing in large caps with already risen value will not really give much satisfaction. Hence, searching for multibagger stocks which includes small caps and mid caps with good business portfolio becomes one good option for any investors.

Usually there is not a fixed parameter to identify which is a large cap stock or which one is small cap. But mostly it is being known that, companies having over Rs 10,000 crore market capitalization fall under large caps category while below that under mid and small caps.

Investing in large caps are considered safe as they are stocks of large well-established companies with stable business models that are considered safe investment. These large cap stocks can give any investors moderate yet safe returns mid-cap companies are usually in the growing phase and have the potential.

On the other hand, small cap companies are the stocks which include startups, mature companies with small industry size etc. They could be big gainers but should be researched properly.

In a year, BSE Small cap has given 29.35% return with an high of 20,183.45, even surpassing the benchmark index Sensex who has grown by 25.44% for the same period having an all-time high of 38,989.65