Experts are cautions that markets are trading near all-time high levels, currently. Aggressive fund flows and positive sentiments have pushed the valuation above their fair value. Many small cap stocks look expensive and way ahead of their fundamentals.
Small-caps have been the best-performing segment in Indian equity markets since the March 2020 lows triggered by COVID-19. For instance, returns of 51 percent of the stocks in the Nifty Smallcap 250 index more than doubled over the last three years ended August 11, 2023.
