Catch-Up Rally Before Correction? Strategy For Mid & Small Cap Investors

Investors are anxiously waiting for signs of recovery in the mid-cap and small-cap segment, which has severely underperformed despite benchmark indices hitting new highs. This imbalance, experts say, cannot continue for long, and a catch-up rally is likely, especially if the broader market takes a breather soon. A relief rally over the next 30 days could allow investors to book profits, rebalance portfolios, and restore confidence. Additionally, clarity around the upcoming US-India trade deal could act as a major trigger, lifting sentiment and enabling mid-caps, small-caps and large-caps to rise together. It’s not the end of the road, but a period that requires patience, watching key catalysts, and planning entry/exit strategies carefully.