{
  "id": 3386105,
  "title": "Small- and midcaps shine as blue-chip stocks struggle for momentum",
  "url": "https://urgent.news/2026/08/26/small-and-midcaps-shine-as-blue-chip-stocks-struggle-for-momentum",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T00:25:15.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/small-and-midcaps-shine-as-blue-chip-stocks-struggle-for-momentum/articleshow/133526882.cms"
  },
  "original_language": "en",
  "account": "Mumbai: Despite India's blue-chip stocks appearing sluggish, the narrative on the equity market is more promising. Mid- and small-cap stocks have continued to outperform the broader market amid an uptick in primary market listings. The average advance-to-decline (A/D) ratio, a key indicator of market health, hit a five-month high in August, signaling substantial investor interest across various sectors.The A/D ratio stood at 1.07 for the month, indicating more stocks were advancing than declining. This surpasses the 1.00 level for five consecutive months, marking the longest streak since April 2023. Manish Bhandari, CEO and Portfolio Manager at Vallum Capital, highlighted that despite IT, FMCG, and metals showing minimal participation, the overall strength in the market persists.The rising A/D ratio indicates broad-based buying across numerous stocks, signaling robust market breadth. Conversely, a declining ratio suggests gains are concentrated in fewer stocks or increased selling activity. Retail investors have been particularly drawn to mid- and small-cap stocks, accounting for Rs 13,960 crore or 56% of total equity flows in August, compared to Rs 11,692 crore or 40% in the prior month. Large-cap funds, on the other hand, witnessed outflows of Rs 1,322 crore for the first time in 30 months, reflecting a lack of interest in blue-chip stocks.The disparity between key indices and the broader market is evident. While the Sensex and Nifty gained 8% and 9% since April respectively, the Nifty Midcap 100 and Nifty Smallcap 100 soared 22% and 31% over the same period. The Nifty 500 has also increased by 15% during this timeframe. This divergence suggests broader participation from investors seeking value in undervalued stocks or growth stocks trading at a discount to their potential returns.",
  "summary": "Mid- and small-cap stocks have continued to defy index-level inertia amid a rush in primary-market listings. The average advance-to-decline (A/D) ratio - a widely watched indicator of overall market health - in August is up for the fifth consecutive month, its longest winning streak in more than two and a half years, pointing to significant investor interest beyond the typical frontbenchers that…",
  "key_points": [
    "Mid- and small-cap stocks outperform blue-chip stocks",
    "Average advance-to-decline ratio hits five-month high in August",
    "Retail investors allocate 56% of equity flows to mid- and small-caps"
  ],
  "editors_take": "The outperformance of mid- and small-cap stocks over blue-chips signals a shift in investor focus towards undervalued or growth stocks, indicating broader market participation and a more inclusive rally.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}