20K & beyond: Sensex, Nifty hit new highs; mid- and small-caps tumble
The Nifty Midcap 150 index dropped 3% and Nifty Small-cap 250 fell 3.9%, Nifty Microcap 250 declined 5.2% on Tuesday – their biggest single-day declines since December 23, 2022.
Analysts on the road ahead for mid- & small-caps
We are in a structural bull market depicted by the acceleration of upward momentum in broader market post breakout from the fi ve-year consolidations of the Nifty Midcap vs. Nifty ratio line.
When smaller stocks get big, margin of safety should get bigger, too
This is nearly eight percentage points higher than the long-term average ratio. The ratio has increased over the past three years from 29% at the end of December 2020
Banking and Financial Services players likely vanguards of next surge
Analysts believe the banking and financial services sector will spearhead the next market surge in the medium to long term, buoyed by India’s economic expansion driven by capital expenditure, burgeoning credit activity, and an upswing in consumer spending.
Large-cap IT stocks in catch-up mode manage to hold firm
“The reason the market saw no panic selling is there is low trader interest and positioning in these stocks, in the segment,” said Rohit Srivastava, Founder, Indiacharts.com. “IT is going to do better backed by a good global tech environment and strong NASDAQ, and will continue to pick up.”