India's world-beating stock market rally is narrowing fast, charts show

Since the end of July, measures of red-hot small and midcap shares have slumped and just a bunch of heavyweights have been keeping the largecap rally alive

As India’s world-beating stock rally powers ahead, skeptics are pointing to lousy market breadth as a sign that further gains may be harder to come by.

The NSE Nifty 200 Index has more than doubled from a March 2020 low -- weathering alarming Covid-19 infection and death rates, strict lockdowns and slower economic growth -- thanks to a massive liquidity boost from the central bank and foreign inflows. Gauges of small- and mid-cap shares have climbed a lot more amid the broad surge.

Since the end of July, however, measures of red-hot small and midcap shares have slumped and just