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Small-Cap Rally Faces Caution: Experts Urge Selectivity Amid Froth and Valuation Concerns

At the Moneycontrol Mutual Fund Summit 2025 held in Mumbai, Niket Shah, CIO, Motilal Oswal Mutual Fund noted the small-cap pause cycle may be ending, with sector growth at 15–16% and a strong market profit share. However, Anish Tawakley, Co-CIO-Equity, ICICI Prudential, warned of froth, aggressive accounting, weak business models, and overvaluation—suggesting only promoters are truly benefiting. Rahul Singh, CIO-Equities, Tata Mutual Fund highlighted improved macro indicators but advised company-specific focus. Experts agreed blind investing is risky; selectivity and stock-picking are key.

first published: Jun 26, 2025 03:40 pm

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