Budget to Budget: PSU Banks Shine, Smallcaps Struggle Amid Global Market Surge

• Between the last Union Budget and the upcoming one, PSU Bank rallied 45.1% and Nifty Metal surged 43.4%, becoming top performers.
• Smallcap indices marginally slipped by 0.5%, reflecting tighter liquidity and selective risk-taking in domestic markets.
• India's benchmark indices (Sensex, Nifty) delivered modest dollar returns (0.3%, 1.8%) compared to global peers like Nasdaq (20.7%), S&P 500 (15.4%), and Nikkei (37%).
• Foreign Institutional Investors (FIIs) showed consistent primary market inflows but largely negative and volatile secondary market outflows, indicating cautious stance.
• Domestic Institutional Investors (DIIs) acted as a stabilizing force, consistently absorbing supply and supporting headline indices amid FII selling.

Why It Matters: PSU banks and metals outperformed, while smallcaps lagged and global markets surged, highlighting uneven market dynamics.