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Smallcap stocks are experiencing a resurgence, mirroring the gains seen in 2024, with the BSE Smallcap Index significantly outperforming the Nifty. While economic recovery and liquidity inflows fuel this rally, experts caution about stretched valuations and the need for selective stock picking based on strong fundamentals.
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The Indian rupee is underperforming among emerging Asian currencies due to the Reserve Bank of India's (RBI) strategy to bolster its foreign-exchange reserves. The RBI's dollar purchases to cover future obligations and replenish reserves are expected to exert downward pressure on the rupee, potentially leading to a depreciation to 86.50-87.50 per dollar by year-end.
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The comments come after Trump said on Friday that China had "totally violated its agreement with us".
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