In the last few trading sessions, the way market breadth has panned out in the mid-cap segment it is very clear that demand for midcap paper is still very high. If one looks at the reaction of the street to a positive surprise in Q4 results coming from a mid-cap company, it is very clear there is still lots of money which is ready to move into midcap stocks. While good results will bring some moderation in valuations, but on an overall basis, the valuations are still at the higher end. But as the liquidity support continues, there is no point in fighting it. The only thing that needs to be done, that while buy the stocks, be more selective and have a long term perspective. Don't panic if tomorrow due to what the US Fed does or anything happening in the Middle east, there is a correction. That will only happen, if one has done his or her homework before buying the stocks.
