Smallcaps Are Rallying. But Smart Money Is Getting More Selective.

The Nifty Smallcap 100 has gained strongly this year, but beneath the index, something interesting is happening. Mutual fund holdings fell across 83 BSE smallcaps in June, after two consecutive quarters of accumulation. Some of the stocks seeing institutional selling have still delivered meaningful returns, showing that the smallcap rally is becoming increasingly stock-specific. That makes the next phase interesting. $LATENTVIEW , !KEC International, !Afcons Infrastructure, !Inox Wind and other smallcaps with declining institutional ownership deserve a closer look. Not because selling is bullish, but because institutional conviction and price performance are starting to diverge.