Smallcaps look set to erase losses sparked by Sebi's froth warning

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Key Points

Smallcap indices are set to wipe out recent losses sparked by market regulator Securities and Exchange Board of India's (Sebi) warnings of froth in the broader markets, as investors remained bullish on this segment last month...

A nine-day rally in the Nifty Smallcap 250 index has put it on track to reclaim the level last seen on February 27 when Sebi's warning caused the bulls to hit a bump...

The Nifty Smallcap 250 index has gained nearly 6% in a week though its 1-month change still reflects an over 1% value erosion..

On Tuesday, Sebi Chief Madhabi Puri Buch said that the current record valuation for local equities was an emphatic vote of confidence by foreign portfolio investors (FPI) in the countrys growth prospects...

While broader markets have performed strongly in the past 12 months, headline index Nifty's returns have been nothing short of impressive..

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