Mid, smallcaps likely to outperform in September; Nifty seen range-bound: Analysts
September historically favors mid- and small-cap stocks over large-caps. Analysts anticipate this trend continuing, expecting limited upside for the Nifty. Heavyweight sectors show recent weakness, and foreign investor selling has resumed. Domestic fund flows remain concentrated in mid- and small-cap stocks. Market action is expected to remain stock-specific until fresh triggers emerge.
Mumbai: Experts predict that mid- and small-cap stocks may outperform the Nifty in September, continuing a historical trend that favors the broader market during the month. According to Bloomberg data, the Nifty 50 and Nifty 500 have risen in five out of the past ten Septembers, while the Nifty Midcap 100 and Nifty Smallcap 250 have advanced in seven.
Analysts believe that paper supply pressure in large caps and resumed foreign institutional investor (FII) selling could limit upside for the headline indices. The Nifty fell 0.4% to close at 24,080.4 in August, while the Nifty Midcap 100 rose 2.1% and the Nifty Smallcap 250 gained 2.5%. The Nifty is expected to remain range-bound between 23,800 and 24,600, with domestic fund flows concentrated in mid- and small-cap stocks.
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