FINANCEOUTLOOKINDIAAPRIL, 20268SMALL AND MIDCAP RETURNS MAY SLIP BELOW 5% ON VALUATION RISKS: NUVAMABAJAJ HOUSING FINANCE PARTNERS WITH IMGC TO BOOST AFFORDABLE HOME LOANRBI NEW E MANDATE RULES RS 15000 AUTO DEBITS CAP AND RS 1 LAKH LIMITSENSEX ENDS 753 POINTS HIGHER, NIFTY RALLIES ON OIL EASINGDEBT MUTUAL FUNDS SEE RECORD RS 2.9 LAKH CRORE OUTFLOWS IN MARCHSmall and midcap stocks may deliver subdued returns over the next five years, with potential gains falling below 5%, according to a strategy note by Nuvama Wealth Management. The brokerage has raised concerns over elevated valuations and a weak earnings outlook, even as the segment has rebounded to pre-war levels in April 2026.While recent gains have lifted investor sentiment, Nuvama cautioned that price strength is not supported by equally strong fundamentals, indicating limited upside potential from current levels.The brokerage highlighted that valuations across small and midcap stocks remain significantly above long-term averages. The BSE SmallCap and Midcap 400 index is trading at nearly 4x price-to-book value, compared with a historical average of around 2.8x. Bajaj Housing Finance has partnered with India Mortgage Guarantee Corporation to enhance access to affordable housing finance RBI has revamped Digital Payments - E-Mandate Rules, allowing recurring transactions of up to Rs 15,000 per transaction and higher limits of up to Rs 1 lakh per transaction without additional factor authentication (AFA), commonly known as OTP. Transactions exceeding this threshold will continue to require authentication.The move is aimed at making digital payments more seamless while maintaining adequate safeguards against fraud. In a major relief for consumers, the RBI has permitted higher limits of up to Rs 1 lakh per transaction without OTP for specific categories such as Insurance premium payments, Mutual fund subscriptions (SIPs), and Credit card bill payments. India's benchmark indices, the BSE Sensex and Nifty 50, closed sharply higher on Tuesday, April 21, driven by optimism around potential US-Iran peace talks and easing crude oil prices, which boosted investor risk appetite.The Sensex surged 753 points, or 0.96%, to settle at 79,273.33, while the Nifty 50 climbed 212 points, or 0.87%, to close at 24,576.60, marking the third consecutive session of gains.Broader markets, however, showed relatively muted performance. The Nifty Midcap 100 rose 0.49%, and the Nifty Smallcap 100 gained 0.88%, indicating selective participation beyond large-cap stocks. The Indian mutual fund industry witnessed a sharp liquidity shock in March 2026, with debt mutual funds recording massive outflows of nearly Rs 2.9 lakh crore, one of the highest monthly withdrawals in recent years. The steep redemptions came amid heightened market volatility and geopolitical tensions, including concerns around the Iran conflict, which impacted investor sentiment.According to data from the Association of Mutual Funds in India (AMFI), debt-oriented schemes saw net outflows of approximately Rs 2.94 lakh crore during the month, reversing inflows of over Rs 42,000 crore recorded in February. through mortgage guarantee-backed solutions, with a strong focus on first-time homebuyers and underserved segments.The collaboration combines IMGC's expertise in credit risk protection with Bajaj Housing Finance's distribution strength and last-mile lending capabilities, enabling wider access to formal home loans for borrowers who are often excluded due to limited credit histories or informal income profiles.REPORT
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