Dalal Street's Best Week in Four Years Sees All-Cap Surge

FPIs net buyers in 3 of 5 days; FTSE index rejig seen attracting foreign funds

- Dipti Sharma

MUMBAI: India's Nifty 50 and Sensex indices have logged their strongest weekly run since February 2021, gaining nearly 4% this week and offering much-needed relief for bargain hunters after plunging 14% from their September highs.

But the real stars were the Nifty Smallcap 250 and Nifty Midcap 100, which jumped 8% and 7%, outpacing their large-cap peers.

"We are moving from the suffocating highs of the Nifty 50 to more breathable territory. But is it a dirt-cheap bargain yet? Not quite—it still needs time," said Lakshmi Iyer, chief executive officer-investment and strategy, at Kotak Alternate Asset Managers. "I think investors will have to start cherry-picking stocks."

The markets will have their own trials and turning points but it's important for investors to not get carried away by near-term factors as headwinds still outweigh tailwinds for now, she added.