Indian equities continue their upward trajectory but largecaps, those stocks valued at Rs 20,000 crore or more, continue to underperform the broader market. The largecap-oriented BSE Sensex is up 31.9 per cent since the end of October last year lagging mid and smallcap indices by a big margin. For example, the BSE MidCap index has risen 58.4 per cent and the BSE SmallCap has rallied 55.6 per cent during the period.

This is not a short-term phenomenon. Smaller companies have been beating their larger peers on the bourses for a while now. The benchmark BSE Sensex is