These stocks from S&P BSE 250 SmallCap space were trading in the green after strong demand from buyers.

Penny stocks can be extremely volatile and one should be cautious while investing in them!

There is no better place to hunt for the top small-cap stock ideas than the mutual fund portfolio holdings. Continue reading to learn about the top small-cap stocks held by mutual funds.

Meanwhile, S&P BSE Smallcap index gained only 255.92 points to end at 29,056.74.

The benchmark indices ended the volatile session with moderate gains on Tuesday. 

At the opening hour, the markets were trading in the green on June 30.  

The markets are attempting to recover from the lower level even as the small-caps are seen outperforming the key benchmark indices on Wednesday. RIL is the top BSE Sensex gainer along with UltraTech Cement and Maruti whereas IndusInd Bank is the top BSE Sensex loser.  

BSE Smallcap index recorded gains of 0.24 per cent to close at 24,965.24.

In a nutshell, in the year 2021, BSE Sensex advanced around 10,000 points in a single year and is qualified to be one of the best years for BSE. Comparing BSE Sensex with ten major world indices across nine countries shows that it displayed the best performance among major Asian economies in 2021. The small-cap stocks that are comparatively more volatile than the large-cap and mid-cap space returned the investors' handsome gains with some stocks turning into multi-baggers for 2021.  

The fear of inflation, rising rates, and recession in US markets along with slowing growth in the global economy are negatively impacting the market sentiments, as of now. From a long-term perspective, the market is trading below its average PE multiples and the market can be considered reasonably valued. With valuation getting a little attractive and most of the negatives being factored in, there is a very good chance that we are trading close to the bottom in the Indian markets.