midcaps: Midcaps begin to outshine larger peers amid broader

midcaps: Midcaps begin to outshine larger peers amid broader rally on D-St


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ET Intelligence Group: Midcaps are now beginning to outrun front-liners as investors buy into ‘bottoms-up’ investment ideas that are not inextricably linked to the pace — and shape — of the macro-economic recovery.
The market value of the Nifty Midcap 100 index rose 26 per cent since the beginning of the year to Rs 25.62 lakh crore, ETIG data showed. Market value of the Nifty 50 index rose 7 per cent in the same period to Rs 116 lakh crore, accounting for nearly 56 per cent of India’s total market capitalisation. The previous peak of the Nifty 100 Midcap was Rs 23 lakh crore in January 2018.
In the past one year, the Nifty Midcap 100 has outperformed Nifty 50 by 32 per cent. As a result, the price ratio of the Nifty Midcap 100 and Nifty 50 has reached a five-year average of 1.65, still lower than the peak of two times in January 2018. So, there is a strong case for investors to hike exposure to the midcap segment. The largest weighted stocks in the Nifty Midcap stocks are

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