Mid- and small-cap stocks outperform when foreign flows resume, says analyst

Analyst Samir Arora of Helios Capital says India’s mid- and small-cap stocks are poised to outperform larger peers once foreign institutional flows turn positive. He noted that past cycles show these segments gain when funds rotate in, especially amid trade-deal optimism with the U.S. He flagged that while the large-cap indices are pricing in much of the near-term upside, under-owned mid & small caps may offer catch-up. Investors should watch foreign investor activity and sector-specific catalysts for entry points.