Small-cap, mid-cap outperform blue-chip stocks::Business Line

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Amid a bull run in the stock market, the mid-cap and small-cap indices have outperformed their large-cap peers so far in 2012.

While the small-gap index of the BSE has given a return of 28 per cent since the beginning of 2012, the mid-cap index is closely following with 27.5 per cent. In comparison, the gain in the blue-chip barometer index Sensex has been much lower at about 18 per cent.

Most stocks in the mid and small-cap segments were beaten down heavily during the last year, as their financial performance were impacted by rising interest rates, analysts said.

The mid-cap and small-cap indices plunged by 34 per cent and 42 per cent, respectively, during 2011. However, the Sensex fared slightly better with a slump of about 25 per cent during the same period.

Shares of companies like HDIL, Lanco Infra and Orbit Corp have zoomed by 127 per cent, 131 per cent and 130 per cent, respectively so far in the current year.

Marketmen said that retail investors should utilise this opportunity of a bullish market to book profit in companies with weaker fundamentals.