How to spot quality midcaps, smallcaps

Hi there, this is ETMarkets’ Investors Guide, a show about asset classes, market trends and investment opportunities. This is Atul P.M.

It was another record-setting week for the domestic equity market. BSE benchmark Sensex settled the week above the 46,000 mark for the first time ever, while the 50-share Nifty closed above the 13,500 mark. Overall, largecaps outpaced midcaps and smallcaps with a rally of more than 2 per cent during the week ended December 11. Analysts said robust inflows from foreign institutional investors and hopes of Covid-19 vaccine have been supporting the rally in Indian equities.

BSE Sensex has gained 56 per cent this financial year, BSE Midcap Index 66 per cent and BSE Smallcap index 82 per cent.

So will the bulls continue to be in driver's seat? Are midcaps and smallcaps set for another round of outperformance? How can one pick quality stocks from the broader market at this stage? We caught up with Sachin Shah of Emkay Investment Manager to discuss these and other questions. LISTEN IN

Welcome to the show, Mr Shah

1) How are you analysing the investing landscape right now amid stretched valuations?

2) Is the ongoing rally the beginning of good days or are we in the last lap before a longish pause?

3) As you said, the broader market will perform better now. So, how do you pick stocks in the midcap and smallcap segments?

4) Which pockets are looking attractive in the broader market?

Thank you Mr Shah. That was indeed an insightful conversation.

That’s it in this week’s edition of the special weekend podcast. Do come back next Saturday for this weekly special. You can check out our regular podcasts on the equity market twice every weekday.