Key Points
All Rights Reserved. . . . Following the Reserve Bank of India's (RBI) decision to hold steady on interest rates and its stance in the December monetary policy meeting for the fifth time in a row, the market reached a new peak on Friday..
After surpassing 20,000 on September 11 of this year, the Nifty took 61 sessions to reach the 21,000 mark..
According to domestic brokerage Nuvama Institutional Equities' most recent report on Small and Mid-cap Strategy, since March 23, in particular, mid-cap indices have increased by 47%, outpacing the Nifty 50 by 27%..
Although mid-cap companies are more expensive than small companies (20x P/E on average over the last seven years), the brokerage notes that over the last five years, mid-cap companies in India have grown in size and profile..
The higher market cap range potentially lends likelihood of the first 50-75 mid-cap stocks being treated as large-caps by investors, and hence mid-cap draw downs are unlikely to be as drastic as seen in history..
