IT stocks were expected to re-rate and that is happening now.
The development, analysts say, has given a fresh trigger to the mid-and small-caps that can see some uptick in the days ahead
Selective small and mid-cap are exhibiting buying momentum after the Sebi circular on multi-cap funds
The relative valuation of midcaps versus large-caps are at a historically low level, said analysts at Elara Capital.
Investors need to focus on the diversified large, mid, or multi-cap segments as the valuation discount of mid/small-cap is adequate at this stage.
The liquidity-driven rally also lifted shares of smallcap and midcap companies that are poised for their biggest quarterly gain in six years.
Of the 685 stocks from the smallcap index, more than half or 429 stocks beat the index by gaining over 16 per cent during the period.
But investors who want the flexibility to alter their asset allocation may avoid these 3-in-1 funds
In the past two weeks, the S&P BSE Smallcap index has outpaced the market by surging 6 per cent, as compared to a 3 per cent rise in the S&P BSE Midcap and 1.3 per cent gain in the S&P BSE Sensex.
The smallcap index touched 11,951 levels, its lowest level since December 29, 2016, while the midcap index hit a low of 12,915, its lowest level since February 1, 2017
Tata Steel, Vedanta and SAIL have seen sharp fall in their stock prices in the recent months.
Front runners insurance stocks have seen higher Investor Interest
Here are three stocks that can rally up to 10 per cent from the current levels as per their technical chart pattern