Diwali cheer missing? Nifty lights up, but your portfolio may be burning; what's driving the disconnect? SAMCO explains

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The Nifty 50’s recent gains are concentrated in heavyweight stocks, while mid-, small- and microcaps have fallen. Valuation recoveries and renewed foreign investor inflows have supported large companies, leaving many investors behind. Whether the rally spreads to broader markets remains uncertain.

Stock Market Outlook: Investors wondering why their stock portfolios are not rising despite the recent rally in the benchmark Nifty 50 may be overlooking one crucial factor: the market's gains are concentrated in a handful of heavyweight stocks, while midcaps, smallcaps and microcaps continue to struggle.

According to Apurva Sheth, Head of Market Perspectives & Research at SAMCO Securities, the divergence between the performance of largecap stocks and the broader market explains why many investors are yet to see meaningful gains in their portfolios.

Over the past month, the Nifty Top 10 Equal Weight Index surged 10.64%, significantly outperforming broader market indices. The index comprises the 10 heavyweight stocks in the Nifty 50, with each constituent assigned an equal weight of 10% and the index rebalanced every six months.

In contrast, the Nifty Midcap 150 declined 2.74% during the…

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