“It is a combination of both retail investor confidence and a rebound in risk appetite, as market valuations have become more attractive,” said Naveen Vyas, senior vice-president at Anand Rathi Global Finance. “The outperformance of retail-heavy stocks in the mid- and small-cap space was driven by a sharper recovery in prices once sentiment improved, as these were the stocks that had corrected the most during the March quarter. That said, the sustainability of this outperformance will depend on earnings delivery and valuations rather than sentiment alone,” he added.
