The Nifty 50 reached an intraday high of 25,932 on October 21, 2025, also a one-year high and just a few hundred points short of its lifetime intraday record of 26,277.35 hit on September, 27, 2024.

Even as the benchmark held firm, mutual funds cut exposure to small-cap stocks, Jefferies said in a report released on October 21.

According to the brokerage, large institutional investors including the Employees’ Provident Fund Organisation ( EPFO ), National Pension System (NPS), insurance firms and Alternative Investment Funds (AIFs) increased their allocations to large-cap companies.

Jefferies said the change was driven by stretched small-cap valuations and a tilt toward firms with steadier earnings and deeper liquidity.

Mutual fund inflows slowed as managers booked caution

Jeffe

See Full Page