Indian smallcap stocks are outperforming the Nifty 50, with some indices soaring up to 200% this year. This rally is fueled by improving earnings, strong domestic liquidity, and renewed investor interest in bottom-up stock picking. While some experts see continued growth potential, others caution about rising valuations and suggest large-caps may offer better value. The sustainability of this trend hinges on earnings growth and easing geopolitical risks.
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