In the year 2022, the stock market has faced many ups and downs. After rallying 24 percent in 2021, the Nifty 50 has been flat this year. Nifty Midcap 100 has been in losses this year. High inflation, tightening monetary conditions, fears of a recession in the US and Europe weighed on equities. However, the Nifty surpassed its previous all-time high of 18,887 on December 1.
On the other hand, the Nifty Midcap 100 is still more than eight percent away from the peak of 33,243 touched in 2021. 2022 Midcaps are still expensive even though many stocks have fallen. While the Nifty 50, Nifty Smallcap 100 are trading at valuations slightly above their 10-year average, the Nifty Midcap 100 is at a 30 per cent premium to its long-term average.
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Motilal Oswal Midcap
“In the next six months, we expect a 10-15 per cent correction in midcaps, which will make valuations more reasonable to buy,” Niket Shah, who manages the Motilal Oswal Midcap 30 fund, told Moneycontrol. Currently, the midcap index is trading at a premium of around 25 percent.
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