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Why Mid and Smallcaps Now
Why Mid and Smallcaps Now
Why Mid and Smallcaps Now
Now ?
1
Nifty At Lifetime High Levels But Mid & Small Caps Continue
To Fall Since January 2018
120 Return (%) Nifty 50 TRI 114.3
Index Name (Jan 2018 to June 2019)
Nifty 50 TRI 14.3 Nifty Midcap 100 TRI
110 Nifty Midcap 100 TRI -15.4 Nifty Smallcap 100 TRI
Nifty Smallcap 100 TRI -31.0
100
Rebased to 100
90
84.6
80
69.0
70
60
01-Jan-18 01-Apr-18 01-Jul-18 01-Oct-18 01-Jan-19 01-Apr-19
Past performance may or may not be sustained in future.
Source: Capital Line and Internal Analysis 2
Within Nifty 50 Too Only A Few Are Driving It
8,500
Jan-18
Feb-18
Mar-18
May-18
Jun-18
Jul-18
Jan-19
Feb-19
May-19
Jun-19
Apr-18
Aug-18
Apr-19
Nov-18
Mar-19
Dec-17
Sep-18
Oct-18
Dec-18
Past performance may or may not be sustained in future.
Source: Motilal Oswal & internal analysis 3
Divergence Between NIFTY 50 & Nifty Midcap 100 Is At
Historical Extreme
Rolling 1-yr return difference between NIFTY Midcap 100 and NIFTY 50
55%
45%
35%
25%
15%
Average: 4%
5%
-5%
-15% -11%
-16%
-17% -18%
-25% -13%
Jun-10
Jun-13
Jun-16
Jun-06
Jun-07
Jun-08
Jun-09
Jun-11
Jun-12
Jun-14
Jun-15
Jun-17
Jun-18
Jun-19
Past performance may or may not be sustained in future.
Rolling 1yr return difference between NIFTY Smallcap 100 and NIFTY
70%
50%
30%
10% Average: 3%
-10%
-24%
-30% -34%
-24%
-50%
Jun-17
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-18
Jun-19
Past performance may or may not be sustained in future.
Source : Goldman Sachs and internal Analysis 5
Extreme Divergence In Large, Mid & Small Companies In Terms
Of Fall
Sharp fall in Mid Caps & Small Caps
11.0
9.0
8.2
6.5 6.7 6.9
3.6
2.8 2.8
Jun-19
Dec-13
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Source: Motilal Oswal and Internal Analysis 7
Nifty Midcaps Relative Valuations Vs Nifty 50 Has Corrected
Back To 2014 Lows
5,000
4,000
3,000
2,000
1,000
-1,000
Liquidity hits low in Mar'16 & System liquidity
-2,000 started improving from there
resulting in a recovery has started improving
-3,000 in the midcap index 6,000
Jan/13
Jan/14
Jan/15
Jan/16
Jan/17
Jan/18
Jul/18
Jan/19
Jul/13
Jul/14
Jul/15
Jul/16
Jul/17
Source : Elara Securities Ltd 10
Dawn After Dusk In Mid & Small Cap In The Past
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The information contained in this (document) is extracted from different public sources. The information shared is only
to explain the trends in large, mid and small cap market. This is no future prediction of market movement. All
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Thank You
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