2021 could be the year of mid-and small-caps, say analysts

Analysts attribute the surge to a host of factors, particularly the interest shown by the retail investors in these two market segments.

Calendar year 2021 (CY21) would well turn out to be the year of mid-and small-caps, say, analysts, who expect these two indices on the BSE to hit a fresh high after a gap of nearly two years. Though they caution against the intermittent market correction, the broad trend, they believe, remains up.

Three consecutive years of declining gross domestic product (GDP) growth, crippling regulations like demonetisation and goods and services tax implementation (GST), the crisis in the non-bank financial segment, real estate crises post RERA implementation, and Covid-19, said analysts at Motilal Oswal, created a deluge of bad news for