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India Small-Cap Funds Pull Record Flows as Broader Market Slips

Source: Bloomberg

Investor Sentiment & PositioningMarket Technicals & FlowsEmerging Markets

Indian small-cap equity funds attracted record inflows in August as investors continued to favor smaller companies despite broader weakness in domestic equities. The flows underscore resilient risk appetite for India’s small-cap segment following a months-long rally, though the divergence from the wider market may raise valuation and reversal risks.

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