Scales tilt in favour of large stocks

Sensex outperforms MidCap and SmallCap indices from May

Last week’s market crash saw the mid- and small-cap companies bleed more than the large-cap stocks. The fall further widened the recent outperformance of the blue-chip-oriented Sensex over the BSE MidCap and BSE SmallCap indices seen in recent months.

Since May, the Sensex’s returns have been 480 basis points (bps) more than the BSE MidCap index, and 652 bps more than the BSE SmallCap index.

Experts said the outperformance was likely to continue as the markets enter a turbulent phase amid flaring geopolitical tensions between North Korea and the US. Also, large-caps provide more comfort on valuations and visibility, they