Small and mid-caps likely to see big gains in CY21, say analysts

Higher earnings growth, lower costs, and valuations favour smaller companies

Topics
Midcap smallcap | Markets | stock market rally

Ram Prasad Sahu & Yash Upadhyaya  |  Mumbai 

After two-and-a-half years of muted returns, small- and mid-capitalisation companies made a comeback in CY20, outperforming their larger peers. While the BSE MidCap index enriched investors by 22 per cent, the SmallCap index was up 21 per cent; these were 500-600 basis points higher than the benchmark indices.

The outperformance of the stocks in these categories is expected to continue in the current year, believe brokerages. Analysts at ICICI Securities expect mid-caps and small-caps to gain more than large-caps and its top picks for the year are in the mid-cap and small-cap ...

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First Published: Sun, January 03 2021. 19:57 IST
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