Scams spoil midcap,small cap party

Small cap stocks can sometimes surprise by yielding large returns to investors. But 2010 brought no such luck as increments were true to their name and mid-caps too took a hit on reports of stock price manipulation in some companies.

A review from December 31,2009 to December 16,2010 suggests that the mid-cap index and small cap index witnessed a growth of 12.65 per cent and 9.88 per cent,respectively,while the Bombay Stock Exchange barometer Sensex outperformed with a gain of 13.74 per cent during the period.

Mid-cap and small cap saw a robust performance till November with both the indices hitting a 52-week high on November 11,but the game changed near the end of the year with a string of scams hammering the sector.