Mid, small-caps likely to outperform large-caps in 2020, say analysts

The relative valuation of midcaps versus large-caps are at a historically low level, said analysts at Elara Capital.

After a subdued performance since the last two years, mid-and-small caps seem to be getting their mojo back with both these indices outperforming their large-cap peer. From their March 2020 low, the S&P BSE Mid-cap and S&P BSE Small-cap indices have surged 57 per cent and 49 per cent, respectively as compared to 47 per cent rise in the S&P BSE Sensex.

Even on a year-to-date basis, the returns have been better. The small-cap index on the BSE has moved up nearly a per cent. The mid-cap index, however, lost 3.7 per cent YTD, but is still better than the