Will mid-caps and small-caps take a breather in 2025? Experts weigh in
Live MintMid-cap and small-cap stocks have been a favourite among investors due to their high return potential. Both the Nifty Midcap and Smallcap indices have seen a decline of over 2 per cent each during the first six sessions of January, compared to a relatively modest 0.2 per cent drop in the benchmark Nifty 50 index. Over the last 12 months, the Nifty Midcap and Smallcap indices posted impressive gains of over 25 per cent each, dwarfing the Nifty's 9.6 per cent rise. For instance, in 2024, the Nifty Midcap 100 and Nifty Smallcap 100 indices delivered gains of 28 per cent and 29 per cent, respectively, far outpacing the Nifty 50's 13 per cent increase. The preceding year, 2023, witnessed even more striking returns, with mid-cap and small-cap indices rising by 32 per cent and 35 per cent, respectively, compared to the Nifty's 18 per cent uptick.