The broader markets gained momentum in the last one month or so, with the BSE Midcap index rising more than 2 percent, but underperformed the benchmark index Sensex which gained 4 percent in the same period.
Government measures including 10 percent cut in corporate tax rate played a key role in sentiment revival among not only largecaps but also midcaps.
Even if we compare the performance of last one year, the underperformance of broader markets continued. In fact this trend has been continued since 2018 especially after more than 40 percent growth in 2017.
The BSE Midcap index fell more than 4 percent against 9.5 percent rally in the Sensex during the last one year. If we exclude the last one month's performance from the last one year, the Sensex gained 5.6 percent while Midcap lost 6 percent, which means sentiments could be improving.