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India’s mid and small caps near highs, setting up a potential large-cap rebound
The piece points to strong mutual fund inflows and retail participation, while FIIs selling appears to have been offset, contributing to a mostly flat Nifty 50 despite risk concerns.
LiveMint frames a possible shift for India’s large-cap stocks, arguing that while the Nifty 50 has been mostly flat since 2024, fundamentals for large caps are still viewed as supportive.
The article ties investor caution to a long list of worries, including trade tensions, the war in Iran, supply disruptions, rising crude oil prices, and a falling rupee, saying this has encouraged investors to avoid the index.
Instead, the broader market has remained resilient, with the BSE Smallcap 250 trading near its 52-week high and the BSE Midcap 150 recently reaching a new 52-week high, which the outlet attributes partly to continued retail buying and the mid and small cap valuation reset after a first half 2026 correction.
It also argues that in a news cycle dominated by geopolitical headlines, smaller companies may be less exposed than large firms due to their limited scale, though not completely immune, concluding that stock market cycles could eventually bring a resurgence in large caps.
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