The GIFT Nifty is trading over 200 points lower.

Silver gains 6% overnight , a 2-month high. Gold prices edge higher to a three-week high.

Nitin Agrawal, CEO, Mutual Funds, InCred Money on the AMFI Data 

Equity-oriented open-ended schemes attracted net inflows of Rs 38,440 crore in April, a bullish signal for equity markets at a time of geopolitical uncertainty.

Flexi Cap retains its dominant position with net inflows of Rs 10,147 crore, the highest among all equity categories by a significant margin. The message here is consistent with what the data has been signalling for several months. In an environment where valuation dispersion across market caps is meaningful and earnings visibility varies, investors continue to reward mandates that give fund managers the latitude to navigate freely across the cap curve.

Small Cap edges ahead of Mid Cap. Small Cap funds attracted Rs 6,885 crore in net inflows versus Mid Cap's Rs 6,551 crore. This is a notable positioning signal. Small Cap funds have historically seen sharper drawdowns during periods of market stress, and the fact that investors are not only holding but actively adding to this category suggests either renewed confidence in the India growth story at the margin, or an allocation catch-up by investors who see post-correction value in smaller companies. 

Sectoral and Thematic Funds recorded net inflows of Rs 1,949 crore, subdued relative to their peak months and meaningfully lower than the broad equity categories. This is a healthy development. The frenzy of sectoral and thematic NFO-driven inflows that characterised earlier periods appears to be moderating, with investors showing a preference for diversified mandates over concentrated sectoral bets.

Multi Asset Allocation funds attracted Rs 5,113 crore in net inflows in April,  a number that continues to grow in significance month-on-month. With AUM of Rs 1,87,071 crore, this category is no longer a niche satellite choice. It is fast becoming a preferred vehicle for investors who want a single-fund solution to the asset allocation problem

From an overall perspective, equity participation is structurally deepening and diversifying. Investors are not clustering into a single market cap segment or a single theme, flows are spread across Flexi Cap, Small Cap, Mid Cap, Large & Mid Cap, and Multi Cap simultaneously. That is the behaviour of a market where investor sophistication is genuinely improving.

Second, the shift toward balanced structures is gathering pace. Multi Asset Allocation funds pulling in over Rs 5,000 crore in a single month, alongside a recovery in Arbitrage and sustained inflows into Dynamic Asset Allocation funds, suggests that investors are beginning to think in portfolio terms rather than individual fund terms. That is a meaningful structural evolution.

At the close on Monday (May 11), the total market capitalisation of all BSE Sensex companies stood at Rs 4,67,30,829.