October 22, 2019

Why the tide that lifts Sensex and Nifty leaves small, mid-cap stocks untouched

Even though there may be nothing fundamentally wrong with a number of small and mid-cap stocks, they continue to be victims of a SEBI norm with regard to restructuring of equity schemes of mutual fund that has killed buying interest in them.

Recent data shows that more than 77 per cent of the total investments by mutual funds and insurance companies is concentrated only in India’s top 50 listed companies (those in the Nifty index).

Mutual funds, insurance companies and other domestic financial institutions (FIs) hold stocks worth more than Rs 20 lakh crore (nearly $300 billion) on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), out of which the share of investm..

Read more at https://www.thehindubusinessline.com/markets/stock-markets/why-small-mid-cap-stocks-dont-rally-like-sensex-nifty/article29755521.ece

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