Mid-cap stocks on a tear but beware of valuations, say analysts

BSE MidCap has doubled in value since the end of March 2020, against a 70% rally in Sensex

Smaller stocks continue to shine at the bourses. The BSE MidCap index is up 18 per cent since the beginning of January this year against a 5 per cent rise in the Sensex during the period. With the current rally, the mid-cap index has doubled in value since the end of March 2020 against a 70 per cent rally in the Sensex during the period. 

On Tuesday, the mid-cap index closed at 21,232, as compared to 17,941 at the end of December 2020. In the same period, the benchmark index moved from 47,751 to 50,193.

The mid-cap index has 98 stocks with