Now Reading: Small-cap, mid-cap stocks trounce benchmark indices
-
01
Small-cap, mid-cap stocks trounce benchmark indices
Indian equities ended the week higher, with the Sensex closing at 78,499.19 and the Nifty at 24,570.65, gaining 0.51% and 0.76% respectively over the week. Small and mid-cap stocks comfortably outperformed, as…
The Story in Brief
Indian equities ended the week higher, with the Sensex closing at 78,499.19 and the Nifty at 24,570.65, gaining 0.51% and 0.76% respectively over the week. Small and mid-cap stocks comfortably outperformed, as the Nifty Smallcap 250 rose 2.4% against 0.9% for the Nifty Largecap 100. A Systematix Group report showed the Nifty mid cap 100 posted a five-year CAGR of 16.7% and the small cap 250 a CAGR of 18.8%, while the Sensex managed only 7.6% and the Nifty 8.4% over the same period. Sectoral leaders included capital goods (5-yr CAGR 24.2%) and metals, while broad-based gains were absent, with realty falling 1.7% on the week.
The Indian Opinion
The narrative that small-caps are always riskier or that large-caps are always safer is being tested. Both segments are delivering strong returns, but valuations matter. Ashwini Shami of OmniScience Capital argues large-caps now offer a better risk-reward, while Alok Singh sees room for small-cap upgrades. The true test will come when full June-quarter earnings are released and foreign flows either materialise or stay away. Is the rally built on earnings or just momentum? That number will settle it.
Sources (2): thehindu.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
