"Largecap indices corrected close to 2.5% in August. However, Nifty Midcap 100 and Nifty Smallcap 100 index gained 3.7% and 4.6%, respectively. The distribution of gains is quite widespread. We expect this trend to continue for some more time as smallcap valuations have not reached those euphoric levels that we have witnessed in the past. We are also seeing good domestic flows in mid and smallcap funds which is extending the rally of non-large cap stocks."
