Mid-, Smallcaps outperform in first half of 2021; analysts see more upside

Among sectors, the metal index recorded robust performance with S&P BSE Metal and Nifty Metal indexes gaining 63 per cent in H1CY21

Mid- and small-cap indices have outperformed the frontline benchmarks – the S&P BSE Sensex (up around 10 per cent) and the Nifty50 (13 per cent) – in the first half of calendar year 2021 (H1-CY21) by rallying 26 per cent and 39 per cent, respectively. The trend, analysts believe, is likely to continue in H2-CY21 as well.

The outperformance in H1-CY21 comes on the back of improved earnings and strong inflows from the foreign portfolio investors (FPIs) in Indian equities. However, good monsoon so far, gradual opening up of the economy and the pick-up in the pace of vaccination provides