Diwali cheer missing? Nifty lights up, but your portfolio may be burning; what's driving the disconnect? SAMCO explains

What happened: SAMCO Securities said the recent Nifty rally is concentrated in heavyweight stocks, while midcaps, smallcaps and microcaps continue to struggle, leaving many portfolios lagging the benchmark. Key numbers: Nifty Top 10 Equal Weight Index rose 10.64% over the past month. Why it matters: Apurva Sheth attributed the divergence to valuation catch-up among largecaps after the correction since January 2026 and the return of FPI flows into large, liquid companies. He said this is not yet a broad-based recovery.

SAMCO Securities said the recent Nifty rally is concentrated in heavyweight stocks, while midcaps, smallcaps and microcaps continue to struggle, leaving many portfolios lagging the benchmark.

Apurva Sheth attributed the divergence to valuation catch-up among largecaps after the correction since January 2026 and the return of FPI flows into large, liquid companies. He said this is not yet a broad-based recovery.