Sample this: The CNX midcap index has grown by nearly 43 per cent since the beginning of the year, whereas the S&P CNX Nifty grew by around 41 per cent in the same period.
The BSE midcap index has grown by 35.3 per cent, while the benchmark index, Sensex has gained by 34.4 per cent since the year began.
Market participants say that the mid and small caps are seeing a flush of liquidity following the foreign institutional investor (FII) money that is moving out of frontline stocks and entering mid and small-cap stocks.
"Profit booking was noticed in A group stocks as the money shifted to midcap stocks. Consequently, the midcap index has fallen lesser than the Sensex," said Amitabh Chakraborty, Head-research (equities), Religare.
In deference to this, a spate of schemes have been launched to tap this segment. HDFC Midcap Opportunities Fund, DSPML Micro Cap and others specifically targeting the midcap and small cap (and even the micro cap companies) were launched in the first six months of the year.
The latest addition to this bouquet of funds is JP Morgan AMC's second product offering in the Indian market, its India Smaller Companies fund.
© 2025