More mid and small cap funds likely to impose restrictions on lump sum investments

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New Delhi, Feb 29 (IANS) More mid and small cap funds are likely to impose restrictions on lump sum investments into the mid and small cap schemes, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

A significant development is the communication from SEBI to AMFI suggesting that mutual funds set up a framework for protecting investors in mid and small cap funds. Sustained flows of retail money into these funds have made their valuations excessive and difficult to sustain, he said.

This will benefit the large caps which are relatively fairly valued now. The correction in the broader market is likely to continue, he added.

Deepak Jasani, Head of Retail Research, HDFC Securities, said NSE announced Shriram Finance will make its entrance to Nifty 50, replacing UPL from the index. The changes will come into place on March 28, 2024. Additionally, Jio Financial Services will enter Nifty Next 50.

He added that India’s economic growth probably slipped below 7% for the first time in the current fiscal year in the October-December period, hit by a tepid manufacturing sector and weakness in consumption.

Bitcoin extended gains after surging above $60,000 for the first time in more than two years on Wednesday, reflecting new demand from exchange-traded funds. The currency almost touched $64,000 on Wednesday. The 2021 record high is just below $69,000. Equities were mixed in Asia on Wednesday ahead of the Federal Reserve’s key inflation metric that will help identify the path forward for interest rates, he said.

BSE Sensex is trading at 72,211.63 points, down 93.25 points. Powergrid, Tata Motors are down more than 1 per cent.



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