Will midcaps join the party again? Midcaps, which have been missing from the market scene in terms of broad participation since the last 4-5 months, are likely to be triggered by the upcoming quarterly results and investments from FIIs and mutual funds.

The risk-reward ratio is now skewed in favor of the midcaps, say experts. But they advice investors to have a balanced portfolio, wherein they should own only those stocks offer a good potential and not be restricted in terms of size.

It is believed that positive quarterly results will help investors realise that midcaps are not that riskier as it is perceived it to be.

Deven Choksey, KR Choksey Sec, says that since the topline fundamental stocks are not easily available, midcaps would find favor with some overseas investors as well.

Choksey said, "There are many midcap stocks which are quite attractive as far as fundamentals are concerned. Since the topline fundamental stocks are not easily available, midcaps would find favor with some overseas investors as well." 

Talking about how quarterly results will be positive for the midcaps, Amit Dalal of Amit Nalin Sec, "If we have a very strong rally continuing then midcaps will participate in the next month or the month after as soon as people realize that quarterly results show us that risks are not as high as what people perceive them to be."

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