MUMBAI: India’s mid- and small-cap stocks are set to receive a boost after the regulator tweaked rules for multi-cap mutual funds, a move analysts say could push about 400 billion rupees ($5.4 billion) to the broader market. Multi-cap funds hold 74% of their 1.4 trillion rupees of assets in large-cap stocks, according to JM Financial Research. The mid-cap segment may get 130 billion rupees, while 270 billion rupees could flow to smaller companies as managers rebalance portfolios, Belapurkar said. JM Financial estimates the total inflow at 411 billion rupees. "With small companies under stress for funding, it is possible Sebi sees the need for re-distribution of money in the capital market.” - Bloomberg

Source: The Star September 12, 2020 23:58 UTC