Mumbai: Fears of an asset bubble in small-cap stocks lashed over the market on Wednesday, dragging down benchmark indices and the broader markets, a day before the expiry of the February series of derivatives. Kotak MF has restricted lumpsum inflows into its smallcap fund to ₹2 lakh per PAN per month and systematic investment plan (SIP) flows to ₹25000 per PAN per month effective 4 March. Last July, Tata Mutual Fund halted lumpsum investments in its small cap fund, while continuing SIP investments. Nippon India Life Asset Management also stopped lumpsum investments into its small-cap fund that month, raising concerns of overvaluation. Nifty Smallcap 250 now trades at a trailing price to earnings multiple of 28.04 times against the five-year median of 25.93 times.

Source: Mint February 29, 2024 05:27 UTC