Small, mid-cap stocks outperform amid current market weakness

Mumbai, March 8 : As the markets have largely taken to a downward trend amid high bond yields in the US, small and mid-cap stocks continue to buck the bearish trend.
An ICICI Securities report said that although the Nifty50 is down around 2 per cent from its recent peak, there is no sign of any sharp increase in risk aversion.
“While the benchmark NIFTY50 index is down 2 per cent from the recent peak of 15,300, there is no sign of any sharp increase in ‘risk aversion’ given the moderate increase in fear index (VIX at 25) and outperformance of strategies such as high beta (up 4 per cent), CPSE (9 per cent), smallcaps (5 per cent), midcaps (3 per cent) and dividend yield (2 per cent) strategies continuing to outperform,” it said.
Further, among the sectors, the performance is led by metals (up 8 per cent), power (7 per cent), energy (7 per cent), media (4 per cent), infrastructure (2 per cent), consumer durables (1 per cent) and PSU banks (1 per cent).
On the other hand, heavy weight underperforming sectors include banking, auto, pharma and telecom, which are down 5 per cent, 4 per cent, 5 per cent and 7 per cent respectively.
Further, FMCG and IT stocks were largely in-line with market performance.