Experts say this reflects selling pressure in mid-, small-cap space
Since the end of July, measures of red-hot small and midcap shares have slumped and just a bunch of heavyweights have been keeping the largecap rally alive
Indicates that number of declining stocks far exceeds those advancing, and may be a bearish signal
Not only are the small- and mid-cap indices off to their best start to a calendar year since 2014 but their outperformance over large-caps is at record levels
This is a contrast to last year, when mid- and small-cap IT companies traded at a P/E multiple of 13.3x at the end of March 2020
BSE MidCap has doubled in value since the end of March 2020, against a 70% rally in Sensex
In a Q&A, Lav Chaturvedi says the market is still predicting that the impact of the second wave of Covid-19 cases will not be as severe as last year
Key factor that has aided the sharp rally, especially in the mid-cap segment is the ample liquidity with global central banks remaining in an 'accommodative' mode
The markets have largely taken to a downward trend amid high bond yields in the US
Take limited exposure to these stocks and opt for the fund route if you aren't adept at direct investing
With markets recovering, midcaps have also rebounded and in fact, have outperformed benchmark indices by a good margin in the last two months
Besides the so-called technical factor, analyst also attribute the current rally to an attractive valuation, prompting investors to buy these stocks
As a result, a lot of multi-cap schemes' investment were skewed towards the large-caps
As of now, the downside is limited in mid-cap banks with volumes staying subdued.
The put-call ratio has climbed to an elevated level of 1.9, which is a negative sign, say experts
Clearly, these are unusual times. So, things need to be done differently
'We are positive on private-sector banks, both retail and corporate', said Mihir Vora, director & chief investment officer, Max Life Insurance
Investors have taken shelter in some of India's biggest companies amid a credit crunch and the slowest economic growth in six years
Present liquidity-driven rally does generate some concerns about the market moving ahead of fundamentals, says Raychaudhuri
One reason why most categories of active funds, and not just value funds, have fared poorly has been the concentrated nature of market performance