Broader markets have outperformed the benchmarks in the last one month with the Nifty Midcap index up nearly 12 percent as compared to a 9 percent rise in Nifty50.

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Only 14 stocks from the Nifty Midcap 100 index were in the red during this period while the remaining 86 remained in the positive territory.

Adani Gas was the leader in the midcap space, up 84 percent in the last 1 month. Meanwhile, Cholamandal Invest, Shriram Transport, Aditya Birla Capital, Apollo Tyres, and City Union Bank rose between 30 percent and 42 percent.

Other gainers included Adani Enterprises, Navin fluorine, MRF, RBL Bank, Ashok Leyland, Dalmia Bharat, AU Small Finance Bank, REC, Indian Hotels, Escorts, and Godrej Properties-- all up over 20 percent.

Notably, over the last 12 months, midcaps have gained 1 percent versus the 2 percent fall in Nifty.

In a recent note, brokerage house Motilal Oswal listed its top midcap picks. Its top picks in the midcap category are AU Finance, IEX, IPCA, Motherson Sumi, ICICI Securities, Crompton Consumer, ABFRL, Mphasis, Emami, and LIC Housing Finance.

MO is 'overweight' on IT, BFSI, Healthcare, Telecom and Auto, and maintains a 'neutral' call on Consumer in its model portfolio.

It further said that another round of fiscal stimulus could help elevate sentiment further.

“We expect the broad market SMIDs (small and midcaps) to beat the narrow indices or large-caps in 2021 because we think the concentration of market-cap and profits may have peaked with the return of the growth cycle. Expect domestic cyclical stocks to outperform exports, with rate-sensitives and consumers outperforming, whereas energy should underperform,” Morgan Stanley also noted in a recent report.

Meanwhile, in another report, IIFL Securities advises investors to look beyond two years from now.

"Equity investors are advised to take advantage of market volatility

arising on account of US Elections and invest in select fundamentally strong stocks with a long term perspective. Investors with low-risk appetite for direct equities are advised to continue to invest in equities through the mutual fund route," it said.