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
Heavy inflows have sent the Nifty small cap 250 index surging 71% over the past 52 weeks and lifted the Nifty mid cap 100 index 64%. That far exceeds the benchmark Nifty's 28% rise
Do states have a case against the Centre on fiscal transfers? How can India rejig the PLI scheme? Is there more room for downside in small-caps? What are the key features of the bullet train corridor?
While Sebi has completed one round of stress test reviews, it wants funds to test for more adverse scenarios, report says
Meanwhile, news reports suggest the Securities and Exchange Board of India (Sebi) is in discussions with the mutual fund industry to carry out a comprehensive stress test of equity funds