Asset managers flag off concerns over steep run-up in mid-, small-cap space

The mid and small cap indices, which lagged large caps until early 2020, have covered lost ground, gaining 73% and 104%, respectively, in the past one year

Asset managers have flagged off concerns over the steep run-up in mid and smallcap stocks, which has shrunk the traditional discount available in the segment vis a vis large cap peers. 

The mid and small cap indices, which underperformed large caps until early 2020, have covered lost ground, gaining 73 per cent and 104 per cent, respectively, in the last one year. 

“The economy is likely to see a cyclical upturn which makes us feel that the outlook for the broader market is likely to be good going forward. However, the euphoric rise in many poor-quality small cap names driven