Investors take a fancy to small caps

Several brokers are advising their clients to take exposure in key small-cap stocks since they expect the segment to rally up in the wake of Reliance Mutual Fund deploying NFO money in the newly-launched small-cap fund.

Brokers are anticipating the scheme to buy into some of the tried-and-tested names it already has an exposure to, rather than betting on new names in a market that appears to be overbought at these levels.

The fund, which closed subscription on September 9, is said to have mobilised close to Rs 450 crore in the NFO phase.


Contributed by Lijee Philip & Shailesh Menon