Money Spinning Mid Caps?

Is this rally in benchmark indices expected to spill over to mid and small cap stocks? What is your take? Mid and small-cap stock prices plummeted post-2017 following a Sebi circular on categorisation and rationalisation of mutual fund schemes. Many of these companies came under pressure due to disruption, liquidity crunch, and technology changes. Promoters’ unwilling or unable to change with time saw their stocks fall off investors’ favor. However, their stock prices started rising over a few weeks recently due to encouraging second-quarter results and hope among investors that Sebi’s circular will lead to money flowing into small and midcap funds. However, the latest option of converting multi-cap schemes to flexi-cap schemes could take away a large part of that trigger. Wealth is created when a small-cap entity turns into a mid-cap company and later a large-cap...