Vinod Nair, Head of Research, Geojit Investments Limited said, “Since the 52-week lows recorded in April for mid-caps and March for small-caps, these segments have delivered strong returns of 20–30%. The rally was driven by a recovery in domestic inflows and value buying, as concerns over earnings downgrades—triggered by the 2025 global economic slowdown, high inflation, and geopolitical uncertainties like trade tariff eased. Q1 results did point to improving corporate earnings, but sustaining this optimism may become challenging with crude oil prices breaching to $100 per barrel. While selective buying will remain, the ongoing elevated market volatility can persist in the near term, making it prudent for short-term investors to book partial profits.”
