Analysis of the Road Ahead for Small caps and mid-caps


Apurva Dhamankar

10/8/20232 min read

Stock Market, which was Established in India a long time ago and is known by many names. The Market started with a small growth with every country having its own stock exchange and in today's time, India has two biggest Stock exchanges named NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

The stock market has been divided according to the size of the company in matters of financial growth. Market capitalization refers to how much a company is worth as determined by the stock market. It is defined as the total market value of all outstanding shares. There are three types of Market Capitalization:

  1. Large-cap- 20,000 Crore or more

  2. Midcap- Between 5,000 Cr. To 20,000 Cr.

  3. Small cap- Below 5,000 crore.

With the current scenario, there has been the rule of Large Cap markets where people are ready to put up their trust but Mid Caps and small caps are having a bit of growth in the market. Why? Because large-cap markets are less risky compared to Midcaps and Smallcaps. Large-cap funds are usually less volatile unless there is some news. They are stable and provide good liquidity and good returns.

Small cap Markets and mid-cap markets have been coming up with bullish behavior for the last 24 weeks, where the market has seen a correction of 8-10% Which can be said a historical conversion where things are falling in place and the investors need not worry about how their investment goes from here on in accordance to Technical Indicators and frame there portfolio with mid-cap industries predicting growth such as BFSI, AUTO, IT, INFRA SPACE etc. So, Midcaps are considered good for portfolio diversification as the companies have good growth potential.

The indicators also indicate growth of an amazing 35% and can expect corrections to take place from here on. Corrections are nothing but help in creating buying opportunities. The index can be eyes from 38,600 to 39,400 in mid-caps whereas 11,800 to 12,100 in the nifty small cap. In these types of situations an investor doesn’t need to invest but keep a watch on the market and wait for the right time to enter which is known as a key support zone.

Henceforth, the Sensex is currently at 65,995, and the Nifty is closing at 19,653.50. It will be amazing to see how the investors start taking part in the market as the Stock market is on growth and the economy is growing with certain initiatives of not only organizations but also with the help of government-friendly Corporate Initiatives.

Thank you.


Vansh Chaturvedi,

Kautilya, IBS Mumbai.