India’s small-cap stocks bounced back strongly in April, logging their best monthly rally in at least a decade after a sharp March sell-off. The Nifty Smallcap 250 jumped 17.1% as local investors stepped into beaten-down names, chasing “quality” businesses with stronger growth prospects and turning the momentum toward recovery.
As oil prices climb and geopolitical tensions drive institutions toward safety, markets remain volatile and many stocks have fallen sharply. Yet retail investors are still buying across segments, even as declines in some areas range from 25% to 60%. With about 65% of small caps in the red, their concentration raises a critical question: is this sell-off nearing a floor?
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