Stock markets are humming well to the tune of liquidity. The Nifty is inching forward. But action may well have tipped over to the mid- and small-cap stocks. Over the past month, the frontline index gained a mere 2%, but the Nifty Mid-cap 100 and Small-cap 100 gained 10% and 15% respectively. The big question is, are the markets overheating.
For the moment, it seems so. Earnings are still showing stress. Nifty 50’s revenues declined 29% year-on-year. Sure, operating profits rode on sharp cost-cutting, but results from heavyweights Reliance Industries, TCS and ITC belied expectations.
