Analysts bullish on mid, smallcaps despite underperformance in CY22

The mid-and small-cap indices on the BSE were down over 1 per cent each as against a similar per cent gain on the S&P BSE Sensex so far this year.

The mid-and small-cap indices on the BSE – down over 1 per cent each – have underperformed the S&P BSE Sensex so far in calendar year 2022 (CY22) that has gained an equal proportion during this period (till close of trade on February 10).

Analysts attribute this to a host of factors including the overall nervousness in the market given the multiple headwinds and selling by retail investors who generally prefer to invest in these two segments. Though from a short-term perspective they remain cautious on the markets, especially these two segments, they believe mid-and small-caps will bounce back and