Nifty 50 gains 1.91%, microcaps crash nearly 9% in October: Should investors shift SIPs to large caps?
Business Today 1 hr ago·7 Nov 2026, 8:48 am
In October, the Nifty 50 index rose about 1.9%, marking its best monthly gain in recent sessions, while the micro‑cap segment slipped close to 9%, the steepest decline among Indian equities.
The split highlights that large‑cap stocks, which dominate the Nifty, continued to benefit from stable earnings and foreign inflows, whereas smaller, risk‑ier micro‑caps faced weaker liquidity and higher financing costs. For investors with systematic investment plans (SIPs), the pattern raises the question of whether to tilt more toward large‑cap funds that have delivered steadier returns.
Going forward, market participants will watch the upcoming earnings season, any shifts in monetary policy, and fund‑flow data to see if the gap narrows or widens. A change in macro sentiment or a rally in niche sectors could also influence the relative performance of large‑cap versus micro‑cap exposures.
Excerpt from Business Today
The Nifty 50 gained 1.91% in October, even as microcaps plunged 8.95% and smallcaps fell 5.81%, according to Motilal Oswal Mutual Fund. The sharp divergence raises a key question for SIP investors: Is it time to shift towards large-cap funds or stay invested in smaller stocks? Indian equity markets witnessed a sharp…Read the original at Business Today
Key takeaways
- Category: Stocks.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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