Indian small and micro-cap stocks are bouncing back strongly after the West Asia conflict. Mid-cap shares are also nearing their pre-war highs. This recovery is powered by local investors returning to these beaten-down stocks. However, large blue-chip companies are still lagging behind. Foreign investors’ caution towards India is limiting their gains.
Small & midcap funds remain top bets for investors as largecap inflows slump
During the first half of FY27, mid-cap funds received ₹38,043 crore and small-cap funds attracted ₹42,212 crore. This increased their share in total equity inflows