Mid and small caps are wobbly: time to exit or add?

The small and mid-cap space offers a plethora of opportunities, but it’s time to separate the men from the boys

Madhuchanda Dey
August 24, 2021 / 09:18 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Equities have had a dream run amid the raging pandemic, thanks to the unprecedented fiscal and monetary support by major central banks globally. The tide of liquidity reached Indian shores as well, which supported the markets’ rally amid economic uncertainties and gloom. However, in recent times, while global markets were a tad jittery with the probability of sooner-than-expected monetary tightening and geopolitical uncertainties, the deeper correction in the mid and small cap space, that had rallied harder than the...