New Delhi, April 4 (IANS) Small-caps and mid-caps have outperformed large-caps in CY23, with a 28 per cent and 24 per cent lead, respectively. Ambit Capital challenges the narrative that this was due to strong domestic mutual fund flows, highlighting FII flows as a significant factor.
According to Ambit Capital, 67 per cent of FII flows in CY23 were in small- and mid-caps, exceeding domestic fund flows in both segments. FII allocation to SMID stands at 23 per cent, the highest since 2005. In terms of sectoral inflows, BFSI, Capital Goods, and Auto received 72 per cent of FII inflows, totaling US$14.8bn.
Domestic Institutional Investors (DIIs) saw their eighth consecutive month of inflows in March’24, reaching USD6.8b, the highest since April’20. Concurrently, FIIs also recorded strong inflows of USD4b in March’24. The Nifty reached a new high of 22,527 in March’24, closing 1.6 per cent higher MoM at 22,327.
In CY24YTD, the Nifty is up 2.7 per cent. Over the past 12 months, mid-caps have gained 60 per cent, small-caps have gained 70 per cent, while large-caps have only risen by 29 per cent. In the last five years, midcaps have outperformed large-caps by 71 per cent, and small-caps have outperformed large-caps by 37 per cent.
