Mid & Small Caps Still The Secret Sauce? Kranthi Bathini On Market Outlook

Mid and small caps have significantly outperformed large caps over the past two years, but can the rally continue? Kranthi Bathini, Director of Research, WealthMills Securities, shares his outlook on the next phase of the market and explains why he remains focused on individual stocks and sectors rather than taking a broad midcap or smallcap call. Bathini says strong domestic liquidity and retail participation have helped sustain valuations, while upcoming Q2 earnings will be crucial for determining the next leg of the rally. He also explains why large caps could stage a comeback if foreign portfolio investors start finding value in the space. With global uncertainty and geopolitical risks still in focus, Bathini says earnings growth remains the ultimate driver of stock prices. So, will midcaps continue to lead or will large caps make a comeback?