Mid, small-caps likely to outperform large-caps in 2020
Published On: Tuesday, August 11, 2020 | By: Team KnowMyStock
Mid-and-small caps seem to be getting their mojo back with both these indices outperforming their large-cap peer after a subdued performance for the last two years. From their March 2020 low, the S&P BSE Mid-cap and S&P BSE Small-cap indices have surged 57 percent and 49 percent, respectively as compared to 47 percent rise in the S&P BSE Sensex. Even on a year-to-date basis, the returns have been better. The small-cap index on the BSE has moved up nearly a percent. The mid-cap index, however, lost 3.7 percent YTD, but is still better than the 7.5 percent fall in the S&P BSE Sensex during this period, ACE Equity data show.
Midcaps vs Nifty“The mid-and small-cap stocks had been badly beaten in the recent fall and the recovery across-the-board has been equally sharp. That apart, these two market segments have seen increased participation from the retail investors, who even invested in penny stocks in order to make quick money,” explains G Chokkalingam, founder and chief investment officer at Equinomics Research.
The relative valuation of midcaps versus large-caps are at a historically low level, said analysts at Elara Capital, while the rolling return discount of midcap versus large caps has begun to shrink. Attractive fundamental outlook and renewed investor confidence are among the key factors, they believe, that will keep stocks of information technology (IT) and pharma sectors buoyant going ahead.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
