Edelweiss MF says the recent dip in mid‑cap stocks is profit booking, not a structural shift.
Bhatia cites three main drivers: the spike in crude oil prices, foreign investor sell‑offs, and a handful of earnings disappointments that have pushed the market lower.
He points out that the correction has tightened valuations across the mid‑cap universe, opening pockets of value in private‑sector banks, passenger‑vehicle manufacturers and their auto‑ancillary suppliers.
Despite large‑cap valuations improving, Bhatia stresses that mid‑caps still enjoy a higher growth premium, and he urges investors not to abandon them for the sake of stability.
Looking ahead, the fund will focus on selective stock picking rather than broad sector rebalancing, keeping an eye on macro‑risk triggers such as oil‑price swings and foreign‑investor sentiment.