Nifty and Sensex Reliance on Few Stocks Limits Market Portrayal; Mid- and Small-Caps Offer Broader Domestic View
• Nifty and Sensex fail to offer comprehensive market portrayal due to reliance on few heavyweight stocks
• Mid- and small-cap indices predominantly mirror domestic landscape and often move independently
• Main indices perform based on country risk, economic outlook, institutional inflows, geo-political risks
• Midcaps are heavily influenced by domestic sentiment and influx of domestic investments
• As market matures, scope of main indices expected to broaden; more money made by thinking about stocks, not just Nifty