Lack of broader market participation casts shadow on month-long rally

Nifty Midcap 100, Nifty Smallcap 100 struggle even as markets make new highs

The underperformance in the broader markets has cast doubt on the sustainability of the rally seen in the benchmark indices over the past month. From October lows, the benchmark Nifty and Sensex rallied over 8 per cent, with the latter even managing to register fresh all-time highs.

By comparison, the broader market Nifty Midcap 100 and the Nifty Smallcap 100 gained the most — 2 per cent during this period. After the latest correction, the one-month return for the Nifty stands at 3.3 per cent; for the Nifty Midcap 100, at less than a per cent; and for the Nifty Smallcap