PMS driving rally in smalland mid-cap stocks?

The Sensex might still be 2,000 points shy of its all-time high but the BSE Midcap and Smallcap indices have run ahead and crossed the milestone. An expert has a novel explanation for the ongoing rally in small- and mid-cap stocks. He says it is the money of portfolio management services (PMS) that is pushing up these stocks. Other experts also say distributors are preferring to sell PMS where the commissions can go as high as five per cent, compared with mutual funds where the fee is only one per cent.