Every now and then the market goes through phases, where it prefers a certain set of stocks, not based on sector but based on the overall market cap. So, sometimes it is large caps, at other mid-caps. Now this partially happens, due to the flows which are coming to markets. For example, if more flows are coming to mid-cap or multicap schemes there is bound to be out performance in the mid-cap space. When flows for large caps would increase as has been the case in the month of August. they performed better. Now what it does is that it tends to create a sudden surge in mid-cap or the large cap. Similarly when there is an outflow like the kind of one which we saw in March 2024, midcap stocks tend to decline sharply. Essentially, it is the flows which impact the broader matrix of how midcaps behave.
