A $775 Billion India Stock Rally at Risk as Small Caps Overheat
- Midcap gauge’s outperformance vs key benchmark is at a record
- Gains in midcaps are in ‘extreme territory’: JPMorgan’s Mookim
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The rally in Indian equities that has swelled the market’s total valuation by $775 billion in a little more than five months has been accompanied by a notable shift in investor preference to smaller stocks.
That poses risks as gauges of small and mid-cap shares show signs of overheating, and as the domestic economic outlook becomes more clouded ahead of national elections next year.