Mid Cap Small Cap

Investors should limit their allocation to small-cap funds to 20-25 per cent of their portfolio.

Sebi Chairperson Madhabi Puri Buch on Friday said there is "no need" for the capital markets regulator to comment on the recent steep correction in small and midcap stocks. Drawing from her statement in March last year on the high valuations in the same stocks, Buch said Sebi had flagged its concerns on the high valuations when it saw a need for it. "On midcaps and small caps, I think that at a point in time when the regulator felt the need to make a statement about it, the statement was made. Today, the regulator feels no need to make an additional statement," she said speaking at an AMFI event here. It can be noted that the small and midcap stocks are in bear territory lately, with some scrips declining by over 20 per cent in quick succession. In March 2024, in what is a rare comment from the regulator, Buch had flagged concerns about the high valuations in the two segments. "There are pockets of froth in the market. Some people call it a bubble, some may call it froth. It may n

This segment, dominated by infrastructure-related firms, beat the broader stock market handily in the past two years

The benchmark BSE Sensex is now down 9.5 per cent from its record monthly closing of 84,300 at the end of September last year

Inflows into equity mutual funds rose to Rs 41,156 crore ($4.8 billion) last month compared to Rs 35,943 crore in November 2024

Smallcaps thrown off stride as regulatory hurdles and high valuations take the reins

Market experts are cautious about the outlook of small-cap stocks going forward

Sharper recovery driven by ongoing foreign selloff in largecaps

The preceding week ended on a positive note for equity benchmarks. On Friday, the BSE Sensex surged 0.96 per cent to close at 79,802.79, while Nifty also gained 0.91 per cent to settle at 24,131.10

Samvat 2080 closes with small and midcaps leading the charge, gold gleams with a 32% gain, and bond markets poised for stability

Multiples will come down if the companies fail to deliver on earnings growth, he said

Kacholia said that going forward, a sizeable portion of outperformance may come from SMID space, where earnings are rebounding more quickly and there are still pockets of reasonable value

Stock Market Highlights on May 8: The S&P BSE Sensex, after gyrating 611 points intraday, ended at 73,466, down 45 points. The Nifty, on the other hand, settled unchanged at 22,303

While past-year returns have been high, these funds are prone to significant drawdowns in tough economic environments

A eight-day rally has put the Nifty Smallcap 250 Index on course for reclaiming the Feb. 27 level when the securities regulator flagged the risk of a potential bubble in the smaller companies

Bulls say the blowout returns in smaller companies stem from robust corporate profit growth in recent years

A gauge of small- and mid-cap stocks has returned 60 per cent in the past year, compared with a 23 per cent advance in India's main S&P BSE Sensex Index

Those having considerable amounts of both should rebalance and stay put

Sebi's communication shows heightened regulatory concern on the surging inflows into Indian small- and mid-cap mutual funds and any potential ripple effects on the financial system