The feeling that 2007 may be the year of mid-small caps is catching on among Stock Mkt players. There was a total disconnect between the price rise of Index stocks and Mid-Small caps in the year 2006, where only the Index heavy weights and a select few pockets of the market saw action.
Talking about near term outlook, I feel there may be a dip in the markets before the coming budget, so one must excercise caution. If at all a dip comes, it will be a good opportunity to accumulate undervalued mid-small caps. The index might be rangebound, while action will shift to underpriced mid-small caps. But for the full year, the outlook is bullish. It is my expectation that by the end of 2007, the index may scale 16000 plus levels.