Image Source: MSN
As market volatility continues, investors are shifting toward large-cap stocks, which outperformed mid and small-cap companies in Q4 FY25. A new report by Equirus Securities highlights that large caps posted a 6% YoY earnings growth, while small caps saw a sharp 16% decline.
Key Highlights:
• Earnings Growth: Large-cap companies recorded a 6% YoY increase, while mid-caps posted 2% growth.
• Small-Cap Struggles: Earnings for small-cap firms fell 16%, reflecting investor caution.
• Sector Performance: Retail, pharma, capital goods, and consumer durables led the gains, while FMCG, infrastructure, IT, and auto sectors lagged behind.
• EPS Upgrades: About 28% of companies received earnings forecast upgrades, with chemicals, defence, metals, and textiles leading the way.
Outlook:
With uncertain macroeconomic conditions, investors are favoring established, stable companies over riskier small-cap bets. Analysts expect large caps to maintain resilience, while select mid-cap and small-cap stocks could rebound as market conditions improve.
Source: MSN, Zee News, Business Today
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