Outliers in the small and mid-cap space

In bull markets, stocks in the small and mid-capitalisation space tend to do better than their larger peers. In the Samvat just ended, the situation was no different. While the S&P BSE Sensex, which is the barometer for India’s largest listed blue chips, made investors richer by about 17 per cent, indices representing smaller listed companies did better.

Investors in small-caps would have added 10 percentage points more to their portfolio as compared to large-caps while those in mid-caps would have enjoyed a difference of 3 percentage points.

The divergence is much more if the time period is year-to-date with