Presently the relentless rally in small- and mid-cap stocks continues as large-caps show signs of fatigue. In July, the Nifty Smallcap 100 rose 8.1 percent, extending its year-to-date (YTD) gains to 48.5 percent, while the Nifty Midcap 100 added 3.1 percent, taking its YTD rise to 33.5 percent. On the other hand, the Nifty50 remained unchanged for the month, with YTD gains of 12.7 percent.
Not only are the small- and mid-cap indices off to their best start to a calendar year since 2014 but their outperformance over large-caps is at record levels.
The Nifty Midcap 100 index has gained for 14 straight months, while the Smallcap 100 index has given positive returns for 13 of the past 14 months.
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