BSE Midcap and Smallcap indices fell over 1.5 percent amid reports that SEBI has urged asset managers to provide investors with more information on the risks associated with their small and mid-cap funds.
Previously, there were concerns regarding government intervention, capital allocation, and agility within PSU firms. However, these perceptions seem to be getting cleared, paving the way for increased valuations and multiples.
The 30-share pack BSE Sensex surged 305.09 points, or 0.42 per cent, to 73,095.22, while NSE's Nifty50 index jumped 76.30 points, or 0.34 per cent, to end at 22,198.35 for the day.
Shift towards equity markets for long-term investment is a major shift, which absorbs the jerks led by volatility when FIIs are selling, said Ajay Kejriwal from Choice Broking.
For the day, BSE Sensex shed 15.44 points, or 0.02 per cent, to end the day at 73,142.80. NSE's Nifty50 pack eased merely 4.75 points, or 0.02 per cent to end the day at 22,212.70.