SynopsisAfter six months of cooling off, are valuations in the mid-cap segment fairly priced? The answer is, no. Does it mean you should avoid this segment? The answer is, again, no. Over the next few quarters, stock price trends and the absolute value of stock prices will be impacted by sectoral fundamentals as well as valuations. As an investor, keep an eye on liquidity and market breadth for the next few sessions as they will determine what happens to mid-cap stocks in the medium term. If both market breadth and the Nifty stay positive, it is likely that we will see more strength in the mid-cap segment. And that would probably also signal the end of this phase of correction.It is after a long time that we have seen a phase where mid-cap stocks and mid-cap indices have performed better than the large-caps segment. Whether this continues will depend on two factors. First, the kind of situation that unfolds post-April 2. And two, more importantly, how the Q4 earning season pans out. That needs to be watched carefully.The good news is that expectations of the street with regards to earning have come down a bit. Also, a ETMarkets.com Mar 26, 2025, 11:11:00 PM ISTGift ETPrime to your friendsGift a SubscriptionNow, gift ETPrime subscription to your friend for Free!Gift this Story to your friendsGift a StoryShare member-only stories with your friends or family and help them read it for free.FONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &in-depth stock reportsSubscribe NowUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.Sign In to Read for FreePrime Account Detected!It seems like you’re already an ETPrime member withLogin using your ET Prime credentials to enjoy all member benefitsLog out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.Sign in & Access ET PrimeAlready a Member? Sign In nowSubscribe NowAlready a Member? Sign In nowOffer Exclusively For YouSave up to Rs. 700/-ON ET PRIME MEMBERSHIPAvail OfferOffer Exclusively For YouGet 1 Year FreeWith 1 and 2-Year ET prime membershipAvail OfferOffer Exclusively For YouGet 1 Year FreeWith 1 and 2-Year ET prime membershipAvail OfferOffer Exclusively For YouGet Flat 40% OffThen ₹ 1749 for 1 yearAvail OfferOffer Exclusively For YouET Prime at ₹ 49 for 1 monthThen ₹ 1749 for 1 yearAvail Offer
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