After a dismal FY23, is the tide turning for mid, small-cap segments?

The S&P BSE Small-cap and Midcap indices have surged around 6 per cent and 4 per cent, respectively, as against a 2 per cent gain on S&P BSE Sensex so far in FY24.

Puneet Wadhwa New Delhi
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The mid-and small-cap segments at the bourses have outperformed their larger peers thus far in fiscal 2023-24 (FY24). While the S&P BSE Small-cap index has surged around 5.7 per cent in FY24, the S&P BSE Midcap index has gained 4 per cent during this period. In comparison, the S&P BSE Sensex has moved up around 2.2 per cent.
The recent surge in the mid-and small-caps, according to Gaurang Shah, senior vice-president, Geojit Financial Services could have been triggered by some fund houses buying into these segments. However, he suggests investors remain cautious and do not jump in just yet to buy stocks from these two segments.
“Investors need to be cautious as regards mid-and small-caps. The recent outperformance needs to sustain and has to be backed by an improvement in earnings as well. One cannot paint the entire mid-and small-cap segment with a single brush. Instead, there will be pockets of outperformance and underperformance. I sugg

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First Published: Apr 27 2023 | 12:41 PM IST

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