Despite the sharp outperformance on a year-to-date (YTD) basis, analysts still believe small-and midcaps (SMIDs) have more steam left. Though there can be an intermittent correction, stock selection will be key, they say. The optimism stems from the better-than-expected rebound in economic activity after a stringent lockdown for a few months in 2020 coupled with efficacy of the COVID vaccine. On Friday, the S&P BSE Small-cap index hit a new high of 21,411, up 1 per cent on the BSE in intra-day trade as power, textiles, jewellery, industrial machinery, chemicals and packaging stocks surged. The current up move, according to analysts at Edelweiss Securities, closely resembles the rally post one global financial crisis (GFC) in 2008-09, not just in quantum and speed, but also the way small-and mid-cap (SMID) indices have outperformed large-cap peers.