Indian stock markets recorded strong gains on Friday, with the Sensex jumping 828 points to close at 77,569 and the Nifty 50 advancing over 244 points to end at 24,206, extending gains for the second consecutive session. According to reports from The Economic Times, the rally was driven by in-line earnings from IT heavyweight TCS and positive global sentiment. The Nifty IT index showed a sharp rally after TCS's earnings announcement, while broader market indices like Nifty Midcap and Smallcap outperformed frontline indices significantly.
Equity mutual fund inflows surged significantly in June, reaching ₹28,973 crore after retreating to a 12-month low in May. As per AMFI data, this represents a 26% increase from May's ₹22,908 crore, with retail investors returning aggressively to mid- and small-cap segments. Retail investors allocated ₹11,692 crore to mid- and small-cap categories, accounting for about 40% of the month's total equity inflows. According to Viraj Gandhi, CEO of Samco Mutual Fund, "Mid and small caps simply held up better, and flows followed the resilience." Mid-cap funds attracted ₹6,090 crore (30% above 12-month average), while small-cap funds saw ₹5,602 crore inflows (19% above 12-month average). Systematic investment plan collections also rose 2.67% to ₹31,781 crore from ₹30,954 crore in May, indicating sustained investor confidence. The mutual fund industry's assets under management edged up 0.8% to ₹82.05 lakh crore, aided by market gains despite outflows from debt funds.
In sharp contrast to the benchmark index, both the Nifty Midcap 150 and Nifty Smallcap 250 significantly outperformed with gains of 4.8% and 8.7% respectively in June, while the Nifty gained 1.4%. Over the past three months, the Nifty Midcap 150 has gained 9.11% and the Nifty Smallcap 250 has risen 15.34%, compared to the Nifty's 1.3% climb. As reported by The Economic Times, the Nifty Midcap 100 scaled a fresh all-time high during the week, while the Nifty is still nearly 8% below its lifetime peak. The Nifty Smallcap 100 is just a stone's throw away from registering a new all-time high. Sectoral and thematic funds also witnessed recovery with ₹1,469 crore inflows in June, indicating renewed investor interest in thematic opportunities. Among other equity categories, flexi-cap funds attracted ₹5,231 crore, followed by large & mid-cap funds at ₹4,321 crore, multi-cap funds at ₹3,070 crore and large-cap funds at ₹2,067 crore.
For the benchmark Nifty, the 24,500–24,550 zone is likely to act as an important hurdle, while the 23,950–23,900 zone remains a crucial support area. According to The Economic Times, a decisive breakout or breakdown beyond these levels could mark the beginning of the next directional move. The India VIX fell another 8% to 12.33, indicating controlled market volatility and suggesting a stable outlook for the coming week. The 10.00–10.30 zone is a crucial support for India VIX, with a sustained move below this range indicating further moderation in volatility.
As earnings announcements gather pace and equity fund flows recover, traders should adopt a selective approach focusing on stocks exhibiting strong relative strength and positive price structures. According to SBI Securities, stock-specific volatility is likely to increase, creating opportunities driven by earnings surprises and sector-specific developments. The analysis suggests that traders should maintain a cautious stance on IT stocks like TCS and Infosys until decisive breakouts occur, while Kalyan Jewellers may offer buying opportunities on dips with a stop-loss below the ₹425–430 zone. Among hybrid strategies, aggressive hybrid funds saw inflows jump to ₹2,121 crore from ₹655 crore in the previous month, reflecting growing appetite for balanced equity exposure. Sectoral and thematic funds also witnessed recovery with ₹1,469 crore inflows in June, indicating renewed investor interest in thematic opportunities.
