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Record Fund Inflows Drive India Small-Cap Rally Amid Broader Market Weakness

Source Summary

India's small-cap stocks are rallying on the back of record fund inflows, even as the country's broader stock market faces headwinds. The influx of capital is concentrating gains in smaller-capitalization companies rather than the overall market.

Why it matters

The concentration of inflows in small-cap stocks reveals a divergence in market performance and investor appetite, with capital flowing away from larger companies despite broader market weakness.

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