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Retail investors may get fingers burnt by aggresively buying small-, mid-caps stocks

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Investors who have entered the markets recently and are gravitating towards mid- and small-caps need to be cautious about the companies they select

Sanjay Kumar Singh New Delhi
Mid- and small-cap stocks have outperformed large caps in the ongoing market rally. Since the market’s low on March 23, the Sensex is up 49.5 per cent, the S&P BSE MidCap Index is up 55.4 per cent, and the S&P BSE SmallCap Index is up 67.6 per cent. 

After this run-up, experts say they are seeing signs of momentum-chasing in some mid- and small-cap counters, which could result in retail investors getting their fingers burnt.

The mid- and small-cap universe underperformed in 2018 and 2019. It also got battered during the March downturn. “After the March lows, the mid- and

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First Published: Aug 26 2020 | 1:49 PM IST

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