A sharp rise in the retail investors fuelled over 50 percent rally in the small & mid-cap space since March but from a long term perspective broader market performance was largely in line with benchmark indices, Shyamsunder Bhat, CIO Exide Life Insurance said in ‘D-Street Talk’ podcast with Moneycontrol.
Bhat is of the view that in the last 2-3 months small & mid-caps have outperformed but from a 10-year perspective, the performance of Nifty Midcap is almost in line with Nifty.
Over the past three years, the Mid-cap index is still in the negative territory and trailing the Nifty. One possible reason for the rise in the small & midcaps is a large increase in non-institutional participants, explains Bhat.
He further added that almost 70 percent of the total volumes are retail in the past couple of months which is generally sub-50 percent in the past over the last several years.
There could be an increase in participation of retail investors via direct equities and possible rotation into midcap funds given that other alternatives are not attractive.
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