🔷️We have Seen Rally in Nifty ahead of Election.Nifty hit all time HIGH of 12041 on 23rd May.
🔷️Since last 18 months Midcaps & Smallcaps have under performed markets.Looking at current scenerio Going forward MIDCAP index can bounce back strongly as many Quality stocks trading at historic low PE.
🔷️With BJP government coming back to power with majority expect market to command high pe multiple even going forward.
🔷️With uncertainty getting over one can expect money to again move towards mid and small caps slowly and this underperformance show by mid & small cap would be covered.
🔷️Indian markets are extremely fragmented as the gap between the Largecap and midcap stocks is huge.Largecap were flavour for last year.Midcaps can start performing going forward.In short term MIDCAP index & Small cap index ready for Bounce.
🔷️There can be Resonable growth in the midcap and small caps going ahead, considering they are available at cheaper valuations vs Largecap.
🔷️We Can see Midcap index & Smallcap index at all time HIGH in next 18 to 24 months.
Disc – All views expressed are personal and for Educational and study purpose only. Consult your financial advisor before investing or taking any position based on above article.