Analysts cautious on mid, smallcaps; await earnings catch-up

Analysts remain cautious on mid-and-smallcap segments and suggest earnings need to catch up before the stocks start to recover

It has been a rough ride for the Indian equity markets thus far in calendar year 2023 (CY23) as they grappled with recession-related fears, rising interest rates amid sticky inflation and the developments with the Adani group that marred sentiment.

While the S&P BSE Sensex has slipped around 0.3 per cent calendar year till date (CYTD), the pain in the mid-and small-caps has been more profound with both these indices slipping 1.7 per cent and 2.3 per cent, respectively during this period. Analysts remain cautious on these two market segments and suggest earnings need to catch up before the stocks