“Visibility on the economic recovery front improved as industrial activities largely continued even during the lockdown, and now, with restrictions likely to ease, consumer demand is expected to make a comeback. Thus, investors are heading more for mid-cap stocks as growing risk appetite, and cheaper valuations of these companies compared to large-cap peers have revived their popularity,” he told mint in an interview.
According to analysts, the Nifty and the Sensex have been consolidating since mid-January, driving liquidity into midcap and small-cap segments. Also, with most large-caps fairly valued, value investors started moving down the market cap pyramid. From their 52-week lows, BSE MidCap has advanced 92%, BSE Smallcap 121% and BSE 500 75%.
The world’s largest bourse in terms of market capitalisation is New York Stock Exchange ($25.62 trillion) followed by Nasdaq ($19.51 trillion), Hong Kong ($6.76 trillion) and Shanghai ($6.56 trillion).