Mastek, Mahindra Forgings, Kalyani Steel spurt on the back of huge volumes

Mumbai : Small-cap stocks such as Mastek, Mahindra Forgings, Kalyani Steel, Lloyds Steel and SE Investments have spurted on the back of heavy volumes. The Bombay Stock Exchange (BSE) small-cap index, the sole gainer from the broader indices, is up 8 points compared with a 87-points fall in the benchmark index Sensex and 20-points drop in mid-cap index at 1329 hours.

Mastek has rallied 13% at Rs 132. The trading volumes on the counter have jumped more than thirteen-fold, with as many as 1.26 million shares changing hands, against an average 117,000 shares traded daily in the past two weeks. Mahindra Forgings has moved higher by 12% at Rs 73 on the NSE. A combined two million shares have changed hands so far, against an average 38,000 shares traded daily in the past ten days. Kalyani Steel, Llloyds Steel and SE Investments have rallied more than 8% each. The trading volumes on all these counters have jumped more than two-fold. “Valuations are cheap in small-cap companies; some companies are trading below their book value. The large cap stocks have recovered, by and large, but mid-cap and small-cap stocks are still down," said Kishor Ostwal, CMD, CNI Research.