Planning to buy mid, small-caps? Here's how to choose the winners

On a year-to-date (YTD) basis, the small-cap and mid-cap indices have gained 18 per cent and 20 per cent, respectively

The mid-cap and small-cap stocks have come back in vogue following their sharp rise from March 2020 lows. Their outperformance vis-a-vis larger peers is likely to continue well into the calendar year 2021, according to analysts.

The Nifty Midcap 100 index has rallied 91 per cent from its March low, while the Nifty Smallcap 100 index has more than doubled, with a 113 per cent rise in the same period, NSE data show. This is against an 80-per cent jump in benchmark Nifty50.

Even on a year-to-date (YTD) basis, the small-cap and mid-cap indices have gained 18 per cent and