Nifty playing peak-a-boo in the last 20 months as mid and smallcap stocks party

While the Nifty50 index has reached an all-time high in June 2023, the midcap and smallcap universes have outperformed the benchmark since the December 2022 peaks. Nifty Midcap-100 and Nifty Smallcap-100 are up 8% and 6% from the December 2022 peaks, respectively, indicating the market’s preference for midcaps over largecaps. Although the markets are touching new highs, Nifty 50’s market cap has not surpassed its December 2022 peak level of Rs 150.5 lakh crore, while Nifty Midcap 100’s market cap is up 7% from its October 2021 peak to Rs 37.5 lakh crore, and Nifty Smallcap 100 is up 21% to Rs 13 lakh crore from its December 2022 market peak.