Quality takes centre stage as investors seek safety in Samvat 2075

Analysts highlight incessant domestic fund flows into smaller companies driven by need for high returns and expectations of higher earnings growth

When there is a flight to safety, it is stocks which are lower down the market cap ladder which get impacted the most. That has been the case over the last year with the BSE SmallCap and MidCap indices down 25-35 per cent from their peaks while the S&P BSE Sensex still remains in the green. There have been multiple reasons for the rise of the small and mid-cap companies in 2016 and 2017 and the slide in the current calendar year. Analysts highlight incessant domestic fund flows into smaller companies driven by need for high returns and expectations of