Investors should monitor stocks, create a budget, and look for earning signals. Dharmesh Kant of Chola Securities explains.

Throughout the first half of 2024, broader markets outperformed the benchmark equity index. During the month ending on June 27, the BSE MidCap and BSE SmallCap indices experienced gains of 25% and 21%, respectively, while the BSE Sensex had gained about 10% year-to-date. Will mid- and small-cap stocks continue to rise in the second half of this year? Now, what should investors do? Dharmesh Kant, Head of Equity and Derivative Research at Chola Securities, discussed his opinions on the domestic equity markets with Business Today. Revised passages:Throughout the first half of 2024, broader markets outperformed the benchmark equity index. During the month ending on June 27, the BSE MidCap and BSE SmallCap indices experienced gains of 25% and 21%, respectively, while the BSE Sensex had gained about 10% year-to-date. Will mid- and small-cap stocks continue to rise in the second half of this year? Now, what should investors do? Dharmesh Kant, Head of Equity and Derivative Research at Chola Securities, discussed his opinions on the domestic equity markets with Business Today. Revised passages:

Investors received exceptional profits from mid- and small-cap stocks in the first half of 2024. What are the markets likely to do next? Kant:

The index front for mid- and small-cap stocks saw the majority of this outperformance. Both divisions' breadth was polarized and non-secular. The reason for this is that a small number of equities drove the price and earnings activity in the banking, finance, real estate, automotive and auto-ancillary, and textile industries. Just about 30% of the top 500 stocks by market capitalization are trading at or near their all-time highs at the most recent all-time high (Nifty at 24,000+). Looking at the Nifty 50 basket, where just 10 equities are at or above their all-time highs, the situation becomes much more dire.