Midcap froth clearing, but caution remains3 min read 18 Dec 2022, 07:49 PM IST
Midcaps have just about managed to hold up against large-caps so far in CY22.
The hot valuations of midcap stocks have cooled off. This offers some comfort, given that midcaps have just about managed to hold up against large-caps so far in CY22. The Nifty Midcap 100 index has risen by 5.15% compared to Nifty 50’s 5.27% returns. As the chart shows, the one-year forward price-to-earnings multiple for midcaps was at a 22% premium to largecap stocks in November, versus the 27% premium seen in September. The trend of the shrinking gap in the valuation premium has continued in December as well.
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