InvestorQ : What explains the sharp rally in some of the small cap stocks like Alok Industries, Opto Circuits and Morepen?
Angel dcosta made post

What explains the sharp rally in some of the small cap stocks like Alok Industries, Opto Circuits and Morepen?

Answer
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Anamika Sodhani answered.
5 months ago


There has been a sharp recovery of over 100% in some of the small cap stocks like ALok, Opto and Morepen. These include some interesting names like Alok Industries, Birla Tyres, Opto Circuits, Andhra Cements, Morepen Laboratories etc. In all the case, the stories have been a mix of very stock specific news and a good deal of speculation. For example, Alok rallied after it was taken over by JM backed by the Reliance group. Morepen recovered after it made some progress on the COVID-19 solutions work. However, analysts do caution on the small-cap segment and suggest investors use the rally to book profit. That is correct. When you are getting large caps at a huge discount, it is time to cleanse your portfolio of penny stocks and small caps. More, where there has been a rally.