Mid-, small-cap shares in limelight despite sluggish market; surge around 4-20%

While key equity benchmark indices continue to maintain a sluggish trend with a negative bias since early trade, mid- & small-cap counters, however, appeared unscathed and surged around 4-20 percent.At 11.22 am, the BSE mid-cap index was up 0.6 percent at 11,280.49 and small-cap index was at 11,771.25, up 0.3 percent. On the other hand, the BSE Sensex was down 0.2 percent at 28,318.94 and the broader Nifty eased 0.1 percent at 8,581.75.[caption id="attachment_2360788" align="alignleft" width="380"] Reuters[/caption]Despite concerns of stretched valuations in several mid and small-cap scrips after the recent run-up, investors seem unfazed and continue to lap up these shares on expectations the strong economic revival in the medium-to-long term would provide a major impetus to these companies going ahead, said market experts.Also, disappointing earnings numbers from several blue-chip companies in the April-June quarter prompted several investors to pare their holdings and switch to mid and small-cap companies, said experts."Valuations wise not many of them are available at cheap levels, but they also give a comfort that a turnaround could be in the offing in the next few quarters on hopes of a strong economic revival," said an analyst with a local brokerage.In the mid-cap space, shares of IDFC rose 3.7 percent to Rs 159.05, Biocon rose 3.4 percent to Rs 471.35, Tata Communications gained 2.3 percent to Rs 485.95 and Cummins India was up 2.1 percent at Rs 1,007.10.Similarly, in small-cap category, shares of G M Breweries vaulted 20 percent to Rs 210, Pratibha Industries soared 14.6 percent to Rs 46.35, R S Software advanced 9.5 percent to Rs 199, Apar Industries added 8.4 percent to Rs 426.20 and SpiceJet was up 6.3 percent at Rs 24.60.