A gauge of mid-cap stocks has turned a corner this year after back-to-back annual declines sparked by investor preference for larger companies amid a slowing economy. India’s main stock indexes hit record highs in early January led by a handful of stocks, similar to 2019. The rally has since spread to the broader market even as the S&P BSE Sensex logged its first loss since August last month.
“We are seeing initial signs of investor sentiment turning positive for the broader market, which wasn’t the case last year," said Arun Kumar, head of research at FundsIndia.com. “If the market holds up for another 3-6 months, we expect to see strong inflows in this segment."
Contributions from regular savers into equity funds remained little changed at ₹8,500 crore, AMFI’s data showed. Total industry assets stood at an average ₹28 lakh crore.
