Nifty Midcap index is down 19% in the past 1 year. Midcaps and Smallcaps are now cheaper than large caps on a forward PE basis

While Nifty looks relatively calm for the year, there is a sharp correction in the broader markets. Nifty Midcap 100 is down close to 20% in the past one year while the Nifty Small 100 index is down about 33%.

This graphic by Livemint shows the level of carnage. The vaunted Midcap premium has disappeared and Midcap 100 index is trading at a forward PE of 15 times vs 17 times of Nifty 50.

Is this is the time to start investing in mid and small-caps?

  • Yes
  • No

0 voters


Looks like an opportunity, but will wait some more time, near JULY 2019. Not jumping in now.

Small caps, maybe no. Midcaps, definitely for the better managed companies.

Came across this today


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Any midcap elss Funds on your list, that looks interesting?

Almost all ELSS funds are multi-cap in nature. They roam across market capitalizations. Check the factsheets for funds which have a mid-cap bias to invest in.

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Where to get such TRI chart?

You can download TRI data for Nifty indices here:

Thanks, but i wanted to know the source of above image.

DSP AMC, the CEO had tweeted the image. They have essentially rebased the TRI data to 100 for the select period.