Small, mid-cap valuations cool but froth remains (opens original article in a new tab)

Small and mid-cap stocks remain overvalued despite a recent correction, with valuations rising again as investor sentiment remains weak due to ongoing geopolitical tensions.

• BSE SmallCap Index is down 8.2% from its September 2024 peak.
• Valuations for small and mid-cap stocks have risen again after a temporary correction.
• Large-cap stocks offer better valuation comfort compared to small and mid-caps.