Stay with sector leaders, realign portfolios in favour of large caps

The mid-cap and small-cap indices have seen their fortunes turn dramatically since the beginning of 2018

V K Sharma is quite taken aback by the current movement in the stock market. Sharma, who is head, private client group and capital market strategy, HDFC Securities, says that he has never seen the Bombay Stock Exchange Sensitive Index, or Sensex, hitting a lifetime high in one trading session, and the mid-cap and small-cap indices hitting their 52-week lows in the next trading session. “Never has the disparity been so high and so visible,” says Sharma. 

And the numbers show it. Sample this: The total market capitalisation of all stocks listed with the BSE stood at Rs 155.1 trillion when