Now Reading: Mid and small caps outperform Nifty and Sensex over five years
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Mid and small caps outperform Nifty and Sensex over five years
Mid-cap, small-cap and selected sector indices have outperformed the Nifty and Sensex over five years, according to a Systematix Group report cited by The Hindu. The Nifty Midcap 100 posted a 16.7%…
The Story in Brief
Mid-cap, small-cap and selected sector indices have outperformed the Nifty and Sensex over five years, according to a Systematix Group report cited by The Hindu. The Nifty Midcap 100 posted a 16.7% compound annual growth rate, while the Nifty Smallcap 250 returned 18.8%. The Nifty India Manufacturing Index rose 15.1% annually and the S&P BSE Capital Goods index 24.2%.
The Nifty’s five-year annual growth was 8.4%, while the Sensex recorded 7.6%. Both declined over the past year, by 5.2% and 7.1% respectively. Midcaps gained 6.2% and smallcaps 9.1% during that period. Systematix said weaker earnings prospects, valuation risks and uncertainty over crude oil prices could limit gains. It said a durable bull cycle needs stronger earnings recovery and revived consumption.
The Indian Opinion
The easy story is that smaller companies have simply beaten the market, while the opposing claim is that every recent gain reflects a bubble. Neither is supported by these figures alone. The five-year record is strong, but the report itself points to valuation risk and weaker earnings prospects. Small-cap returns can also hide sharp losses within individual stocks. Investors should watch whether earnings and consumption improve, rather than treating past CAGR figures as a forecast.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
