Small-caps set for biggest rally in nearly 10 months on rising demand

The latest outperformance in the broader market comes after two years of sharp underperformance vis-a-vis large-caps

Shares in the broader market are witnessing huge buying interests and are poised for their biggest gains in nearly 10 months. 

In the past one month, the Nifty SmallCap 100 index has rallied 11 per cent — the most since September 2019. In September, it had gained 11.2 per cent through the month following the government’s decision to lower corporation tax rates. 

Another few basis points of gains would mean that the rolling 1-month returns for the Nifty SmallCap index would be the most since March last year. The Nifty MidCap 100 index, too, has seen a sharp uptick, rising