SBI MF: Large Caps to Outperform as Mid, Small Caps Struggle

• SBI Mutual Fund predicts large-cap companies will continue to outperform mid and small caps due to relative valuations and weak broader earnings.
• Equity market polarization is evident, with most gains driven by select large-cap stocks while the broader market lags.
• November and Year-to-Date data show significant divergence: large-cap indices performed strongly, while mid and small caps saw lower or negative returns.
• Weak corporate earnings and market breadth, with two-thirds of BSE 500 stocks underperforming, contribute to this trend.
• India has underperformed global equities this year, and polarization may deepen unless earnings improve across the board.

Why It Matters: This trend impacts investment strategies, favoring large-cap stocks over mid and small caps.