Small, Midcap Indices Soar 3% in 2 Days: Risk-On Sentiment Returns Post-India-US Trade Deal

• Smallcap and midcap indices surged up to 3% in two days, signaling a return of risk-on sentiment in Indian markets.
• The Nifty Smallcap 100 index rose over 3% in two sessions, while the Nifty Midcap 100 gained more than 2% this week.
• Key drivers include renewed risk-on sentiment, FII buying, and value-buying after months of underperformance.
• The India-US trade deal, reducing US tariffs on Indian exports to 18%, has uplifted market sentiment.
• Foreign investors were net buyers, purchasing equities worth Rs 2,254.64 crore, contributing to the market rally.