Start of the calendar year 2020, the trend is moving towards Mid & Small caps stocks.
Mid & Small-cap has had a consecutive two years of fall, and the gap between large-cap and Mid/ Small-cap continues to stretch. So far in January, NIFTY MIDCAP 100 and NIFTY SMALLCAP 100 recorded only 2 negative sessions, out of 13, which shows sign of a bullish trend.
In global markets, United States, Europe, China and Japan, these categories of stocks (Mid & Small) has already started showing sign of recovery, and in Indian history, based on historical trend, index/ stocks generally follows their global peers.
Sensex and Nifty are at an all-time high, due to inflows in the market from FII & DII, mainly driven by the large-cap or industry leaders, as investors prefer to invest in safe stocks, after many uncertain events that took place in the past (NBFC crisis, economy slowdown etc.).
| 1 Week | 1 Month | 1 Year | 2 Year | |
| NIFTY MID100 | 3.80% | 6.80% | 1.70% | -15.60% |
|---|---|---|---|---|
| NIFTY SMALL100 | 4.40% | 11.00% | -2.90% | -32.90% |
Data Source: Moneycontrol
Image Credit:Rediff.com