Mid-caps, small-caps soar despite no material change in fundamentals; irrational exuberance could be at play, says Kotak
Mid and small-cap stocks witnessing a steep rise seem disconnected from fundamentals, driven by investor irrationality, says Kotak Institutional Equities.
Many mid and small-cap stocks have witnessed a steep rise in the last six months which seems disconnected from the fundamental factors. Instead, it appears to be driven by investor irrationality, fueled by recent high returns rather than improved company fundamentals, said brokerage firm Kotak Institutional Equities in a report on September 11.
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