Mid-caps are in vogue. Ask JP Morgan which recently dished out a report showing that the 38 most traded large-cap companies received only 59 per cent of the total FII inflows in 2003 compared with 82 per cent in 2002.
The moolah is shifting to various mid-cap stocks because several of these companies are seen to have restructured their businesses, raised dividend payouts and churned out good financial performance.
A notable exception to the rule: mid-cap tech stocks. To be sure, the markets have not been terribly excited about tech stocks in general, but they were particularly tepid on mid-caps.
Compare: the aggregate market capitalisation of large-cap IT companies declined 19.13 per cent between June-end 2002 and June-end 2003; small-caps lost 38.32 per cent and mid-caps 25.33 per cent. That's faster than the rate at which the BSE IT Index fell: 24.59 per cent.
