SMALLCAPS EARN THEIR FEATHERS, GOLD SHINES

Samvat 2080 closes with small and midcaps leading the charge, gold gleams with a 32% gain, and bond markets poised for stability. As investors celebrate strong returns, caution is advised amid evolving economic landscapes and geopolitical uncertainties Small, midcaps steal a march on largecaps As investors celebrate strong returns, caution is advised amid evolving economic landscapes and geopolitical uncertainties

- SUNDAR SETHURAMAN & ABHISHEK KUMAR

If the Nifty50 returns of 25 per cent were impressive, the broader market performance was nothing short of stunning in Samvat 2080.

Both the Nifty Midcap 100 and Smallcap 100 indices clocked returns of around 38 per cent each, outperforming the Nifty by almost 13 percentage points. They outshone the index by a wide margin in three out of the last four Samvat years.

Given their sharp outperformance, experts are advising investors to proceed with caution.

Strong domestic liquidity, underpinned by strong flows into small and midcaps mutual fund schemes, buoyed the broader market during Samvat 2080.

Between November 2023 and September 2024, smallcap and midcap funds recorded net inflows of nearly ₹53,000 crore. They accounted for 17 per cent of the ₹3 trillion net inflows into active equity schemes during this 11-month period.