negative
Small-Cap Valuations Under Pressure as ₹4 Lakh Crore Market Value Erodes
A sharper correction in India’s small-cap universe has erased nearly ₹4 lakh crore in market capitalisation during 2025, raising concerns among analysts and regulators. Overstretched valuations, high retail leverage, and rapid profit-taking have amplified volatility across smaller companies.
Mutual funds focused on small- and mid-cap themes are witnessing pressure on NAVs, prompting discussions on stricter margin rules and risk-weighting norms. Industry observers warn that continued stress could trigger deeper corrections and rebalancing by fund houses.
Tags:
- markets
- smallcaps
Explore:Mutual Fund Categories
negative
Small-Cap Valuations Under Pressure as ₹4 Lakh Crore Market Value Erodes
A sharper correction in India’s small-cap universe has erased nearly ₹4 lakh crore in market capitalisation during 2025, raising concerns among analysts and regulators. Overstretched valuations, high retail leverage, and rapid profit-taking have amplified volatility across smaller companies.
Mutual funds focused on small- and mid-cap themes are witnessing pressure on NAVs, prompting discussions on stricter margin rules and risk-weighting norms. Industry observers warn that continued stress could trigger deeper corrections and rebalancing by fund houses.
Tags:
- markets
- smallcaps
Explore:Mutual Fund Categories
1 min read
75 words
Small-caps lost nearly ₹4 lakh crore in 2025, fueling concerns about leverage, valuation excesses and pressure on small-cap mutual funds amid rising volatility.
A sharper correction in India’s small-cap universe has erased nearly ₹4 lakh crore in market capitalisation during 2025, raising concerns among analysts and regulators. Overstretched valuations, high retail leverage, and rapid profit-taking have amplified volatility across smaller companies.
Mutual funds focused on small- and mid-cap themes are witnessing pressure on NAVs, prompting discussions on stricter margin rules and risk-weighting norms. Industry observers warn that continued stress could trigger deeper corrections and rebalancing by fund houses.
A sharper correction in India’s small-cap universe has erased nearly ₹4 lakh crore in market capitalisation during 2025, raising concerns among analysts and regulators. Overstretched valuations, high retail leverage, and rapid profit-taking have amplified volatility across smaller companies.
Mutual funds focused on small- and mid-cap themes are witnessing pressure on NAVs, prompting discussions on stricter margin rules and risk-weighting norms. Industry observers warn that continued stress could trigger deeper corrections and rebalancing by fund houses.
Tags:
- markets
- smallcaps
- markets
- smallcaps
- risk
- mutual funds