After outperforming benchmark indices in the last 5 years, midcaps struggled in the last two months weighed down by muted global cues and fierce selling by foreign institutional investors (FIIs).
But, the party may not be over for the bulls who love the midcap space, suggest experts. Even though the investor would prefer largecaps more in 2018 thanks to attractive valuations, but select midcaps could do well.
“Since the last one year both mid-cap and small-cap stocks have outpaced the benchmark Sensex beating concerns over valuations and fundamentals,” Amarjeet Maurya- Sr. Equity Research Analyst - Mid Caps at Angel Broking told Moneycontrol.
“Going ahead, we believe the quality of midcap and small cap stocks would outperform the index mainly due to strong earnings momentum, better ROE, and relative releasable valuation,” he said.