Why it’s time for a fresh rally in midcaps and smallcaps

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Key Points

Since 2010, the Nifty Smallcap 100 and the Nifty Midcap 100 have embodied a bullish run in the month of April..

This trend has been characterized by consistent upward movements in these indices, marking April as a particularly favourable period for investors eyeing small and midcap stocks...

Despite a consolidation phase in the Indian markets, the Nifty Smallcap 100 and Nifty Midcap 100 have remained resilient..

While the Nifty Smallcap 100 registers an impressive average return of 4.44%, the Nifty Midcap 100 yields a 3.27% gain, outperforming every other month by a considerable margin...

Given the high valuations of benchmark indices, expected lower liquidity due to potential sidelining by Foreign Institutional Investors (FIIs), and increased regulatory scrutiny, investing in stocks without solid earnings backing could be similar to skating on thin ice...

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