India’s mid-cap stocks lead as sector rotation picks up steam

On 23 October 2025, the Nifty Midcap 150 index out-performed large-cap peers as investors shifted allocations amid rising optimism about discretionary, industrials and export-linked stocks. Analysts highlight a rotation from over-valued private banks toward mid-caps, and elevation of IT names whose valuations remain compressed. The move coincides with the broader market nearing record highs and foreign inflows returning. Traders note that this may reflect early signs of valuation re-balancing ahead of Q3 corporate earnings.