New Delhi, March 20 -- The relief rally in small-cap stocks appears to have opened bargain hunting windows for mutual funds that recently avoided investments in new scrips in this segment, as beaten-down stocks begin to look more appealing.

Small-caps chased by retail investors over more than two years plunged nearly 24% from their most recent highs, before a rally over the last three days limited losses to 20%. However, it remains to be seen whether this momentum will continue and if the correction is truly over.







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The small-cap rally over the last two to three years was largely driven by excess liquidity and a heightened risk-on sentiment, noted Abhilas...