Select mid & smallcaps on a roll, but broader market lags

Indian market breadth remains weak with the advance-decline ratio at 1.01 in July, compared to 2.13 in April, as gains remain concentrated in select mid-cap and small-cap stocks. The Nifty Midcap 150 hit an intraday lifetime high of 23,239.65, while the Nifty 50 is down nearly 7% year-to-date and has been trading in a 23,500-24,500 range. FIIs have been net sellers of shares worth about 2.87 lakh crore in 2026, and analysts expect the Nifty to remain range-bound between 23,000 and 25,000, with concentration in mid and small caps likely to persist given steady SIP inflows into a narrow set of 300-400 stocks.