The broader market staged a strong comeback with a 1-2 percent rise in BSE SmallCap and MidCap indices on March 14.

The indices suffered the blaze of intense selling in the previous session which, analysts believe, was a result of a strong rush to book profits on the back of sustained exuberance in the segment.

On March 15, mutual funds are expected to disclose their stress test reports regarding the capacity of small- and mid-cap fund schemes to handle abrupt redemptions because of unfavourable market conditions.

Discussions surrounding liquidity challenges in small-cap funds and the increasing excitement in this segment have raised the concern for months. Market regulator Securities and Exchange Board of India (Sebi) has been actively engaged with mutual funds to find an appropriate solution to this issue.

Sebi has also been pushing towards limiting the risks in the small and mid-cap indices that has resulted in the tightening of norms around mutual fund investments. This has weighed on the mid and small-cap segments in recent times and, in turn, triggered bouts of strong profit-booking.

Hold All Your Positions Tightly With Patience Dear

@arbindtiwariT