India’s benchmark indices, the Nifty 50 and BSE Sensex, are inching close to their all-time highs, yet the broader market tells a different story. The rally is being driven by a handful of large-cap stocks, leaving many mid- and small-cap portfolios behind.
The BSE Smallcap index remains about 6 % below its recent peak, while many IT stocks trade 20 %+ below highs despite the headline indices being near record territory. Experts warn that without broader participation the rally may lack depth.
Investors are encouraged to:
- Review portfolio breadth and check if exposures are overly concentrated in large-caps.
- Consider phased allocation into mid- and small-cap stocks where earnings upside is gaining traction.
- Be cautious about chasing the index without underlying conviction.
In short, the market may be near its highs, but many investor portfolios haven’t yet joined the party.
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