Several mid-cap and small-cap stocks slide; analysts advise caution

Currently, mid-caps trade at premium valuations to the blue-chip stocks

Even as the BSE Sensex and NSE’s Nifty50 are close to their record highs, several stocks in the small- and mid-cap space have seen a huge correction. Stocks such as RCom, IDBI Bank, Bank of India and Glenmark are down 17-44 per cent in the past month. In small-caps, Videocon, Shilpi Cable and Nitin Fire have dropped 58-74 per cent. While RCom, Videocon and IDBI Bank have corrected due to case-specific developments, analysts say a sharp run-up in the past six months make stocks in this space vulnerable to negative news flows.

“Indian mid-caps and small-caps as an asset class may