Mid Caps Play Catch Up
by Rachna Monga - BW
The appetite for mid- and small-cap stocks is coming back. As the graph (see ‘Mid-caps Take The Lead’) shows, BSE Midcap Index (representing 270 stocks) is closing the gap with the large-cap stocks, represented by the Sensex. In November so far, the CNX Midcap Index pipped (represents 100 stocks) S&P CNX Nifty, gaining 4.12 per cent as against the latter’s 3.53 per cent, and BSE Midcap was up 3.59 per cent as against 3.89 per cent of the Sensex. That’s a new trend, because since the carnage in May, only large-cap stocks were doing the running.
“Most mid caps are quoting below the peak levels of May and retail investors sitting on losses were not willing to enter the market. But now they are getting tempted,” says Arun Kejriwal, strategist, Kris Securities. Nearly 50 per cent of the BSE mid-cap stocks are still quoting below their 10 May peak levels.
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