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The 3.7 per cent decline in the small-cap index this week when Nifty appreciated by 0.5 per cent is a big underperformance, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Large-caps are outperforming mid and small-caps. This trend is likely to continue since valuation in the broader market remains highly elevated and the regulator has sent a clear message regarding the froth in the segment, he said.

“Investors have time, even now, to switch from small-caps to fairly valued large-caps and partly to fixed income products. At this stage in the market, safety should be given priority over return," he said.

Bank Nifty is emerging stronger led by private sector majors like ICICI Bank, Axis Bank, Ind Sind Bank and Kotak Bank. Three, regulatory action on some NBFCs have impacted sentiments in the entire NBFC space, which, in turn, is improving sentiments in the high quality private banking space, he added.

In February 2024, Nifty Next 50 emerged as a best performing index with a growth of 6.68 per cent, exhibiting consistent performance. The index has seen consecutive growth during the last three months, six months and one year of 22.85 per cent, 32.8 per cent and 58.36 per cent respectively.

Meanwhile, the mid-cap, small-cap and micro-cap indices experienced a decline of 0.3 per cent, 0.65 per cent, and 1.39 per cent respectively, as per Motilal Oswal Asset Management Company.

The realty sector maintained its upward trajectory and surged by 6.3 per cent, leading as the top performer, while the FMCG index saw a 1.9 per cent decline, marking it as the worst performer.