The BSE mid-cap and small-cap indices gained around 2.5% each on Monday outpacing the benchmark indices. To be sure, mid and small-cap stocks have been outperforming the benchmark indices this year despite weak earnings. BSE Mid-cap and BSE Small-cap indices have soared 25.4% and 28%, respectively. Mid-cap and small-cap indices are at a premium to benchmark indices, trading at 19.2 and 18.4 times their respective one-year ahead earnings. He sees more upside to the mid-cap stocks with the upturn in economic growth in India.

Source: Mint August 14, 2017 21:00 UTC