Small and midcap stocks have turned bearish, with some plunging over 20% in a short span. In March 2024, Buch warned of high valuations, cautioning against market froth. “Some call it a bubble, some call it froth. It may not be appropriate to let it keep building,” she stated, highlighting risks in these sectors.
Is the smallcap rally a trap? Only 37% of stocks are outperforming their benchmark
India’s recent smallcap surge indicates that less stock is outpacing the benchmark index, revealing a narrowing group of successful stocks boosting overall returns. Conversely, largecap