Page 3 - Smallcap Space News Today : Breaking News, Live Updates & Top Stories | Vimarsana

"While Indias long-term future looks bright, the valuations are at the upper end of the range, and there is some froth in small/mid-cap stocks. So, despite being bullish on India from a long-term perspective, pure beta strategies may struggle to deliver good returns in the short term. Further, Our markets will also evolve to distinguish between sophisticated investors and retail investors."

Samco Mutual Fund believes that there is still momentum in the small and midcap space despite the pace of inflows slowing down in midcap and smallcap funds. Valuations in the midcap and smallcap space are stretched, but there are still investment opportunities in niche NBFCs, specialty chemicals, auto and auto ancillaries. Thematic funds have gained traction due to geopolitical factors. Key factors to watch in Q2 earnings include IT companies that are not facing weaknesses and improvements in the margins of manufacturing, automobiles, and FMCG sectors.

“Upper limit for qualifying as a midcap stock crosses an all-time high of $5 billion last seen during May 2018 and is up 5 times from the taper tantrum lows of $1 billion. Upper threshold for smallcaps at $1.6 billion is still below the level seen in January 2018 level of $1.8 billion,” said Vinod Karki and Siddharth Gupta of ICICI Securities. The Amfi classification tags top 100 stocks by average marketcap between January and June as largecap, next 150 as midcap and the rest as smallcap. Interestingly, two of the newly listed stocks--IRFC and Indigo Paints--will debut directly as midcap ...