Large Caps Struggle: Why Mid & Small Caps Could Outperform In This Market

Large-cap stocks are facing pressure as the Nifty struggles around the 24,000 mark amid rising crude oil prices, bond yields and West Asia tensions. Meanwhile, mid-cap and small-cap stocks have delivered stronger returns. Rakesh Vyas, CIO & Portfolio Manager, Quest Investment Managers, explains why his strategy turned positive on the small-cap space after a long period of consolidation and stock derating. He highlights bottom-up opportunities, including Coforge, which became attractive after the February-March correction. The expert also discusses why large banks may find it difficult to deliver higher growth despite strong 17–18% overall credit growth in the economy.