InvestorQ : How has the mid cap index performed in the market? Has it also gained like the large cap indices?
Rutuja Nigam made post

How has the mid cap index performed in the market? Has it also gained like the large cap indices?

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6 months ago
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At last, the mid cap and small caps are also showing traction this time around. It is not just the large boys that are taking the market cake. In the midst of all the euphoria in the market, the BSE Mid Cap index also hit a 52-week high during the week.

This is a way of the market indicating that the rally is certainly a lot more broad-based than it appeared to be. Among the mid cap index stocks, names like Adani Green Energy, Ashok Leyland, Balkrishna Industries, Info Edge and PI Industries scaled new highs in the market.

Investors and analysts have multiple reasons and justifications to be long on mid-cap stocks in recent times. The reasons to be positive on mid caps stocks include a sharp economic recovery and weak oil prices, since most of the midcaps are normally oil consumers.

Of course, mid cap investors are still playing it safe and sticking to the tried and tested sectors like pharma and FMCG. The traction of growth in earnings and revenues is much higher in these cases and the COVID impact is also limited.

For example, some of the mid cap stocks where analysts and most investors appear to be bullish include stocks like IPCA, Coromandel, Page, and Kansai Nerolac etc. Mid caps are also seeing institutional flows, which is a new trend in the last few weeks.

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