With sharp corrections in small and midcaps, flexicap and largecap funds are attracting more investor inflows and folio additions, driven by better short-term returns
However, immediate shift in investor preference unlikely, say experts
Median smallcap scheme has 2.03% of its investments from top 10 investors
Analysts believe that the recent up move is led by bottom-fishing in select smallcap stocks; the index, however, needs to conquer the long-term averages to qualify for a market reversal.
Earnings-related uncertainty continues to weigh on small caps
Market players said a sharp rally in the broader markets over the past two years was underpinned by strong domestic inflows, particularly via the equity mutual fund (MF) route
Nava Ltd share price: Nava Ltd will buyback 7.2 million shares at Rs 500 per share
Despite a 23% drop from the peak, valuations still above long-term averages
Nearly 60% of the SmallCap stocks registered a sharper loss compared to the Nifty SmallCap 100 and SmallCap 250 indices, which were down around 24% each from their respective peaks.
Shares of Aegis Logistics, JK Lakshmic Cement, Mastek, Deepak Fertlisers and Karur Vysya Bank are looking weak on the technical charts; hence may witness a downward trend in the near-term.
This week worst for Smids since Covid fall
Analysts expect this painful phase for the small-cap stocks to continue for some more time, at least till the corporate earnings start to show signs of improvement.
The uptick in the RailTel share price came after the company announced that it has secured multiple orders of Rs 221 crore
For the first time in 23 years, Nifty has declined for four consecutive months
Average smallcap exposure beyond top 500 stocks rises to 31% from 22% in three years
The NSE Nifty Smallcap 250 Index was on course to enter a bear market after losing about 3.5 per cent early in Tuesday's session after a similar drop the previous day
10 big funds need 37 days to sell 50% of portfolio, up from 29 days in Feb '24
Goldiam International has rallied 9% to Rs 569.50 in intraday trade, zooming 82% in 2 months and PGIL has surged 6% to Rs 1,718.05 in intraday trade, soared 71% in two months.
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The two key market indices, the Nifty 50 and Sensex, peaked on September 27 and are down 11 per cent now