Small- and mid-cap indices summarily beat frontline indices in FY24, giving more than double the returns of Nifty 50. However, equity analysts expect the trend to reverse going into the next financial year 2024-25 as large-cap stocks may reclaim momentum, while Sebi's concerns of 'frothy' valuations and mutual funds' stress test results cast a shadow on small-cap stocks.

Indian equity markets had exhibited a stellar performance in FY24, backed by accommodative monetary policy, strong domestic retail participation, corporate earnings, and economic recovery post pandemic blues. From 16,900 to 22,500, benchmark Nifty 50 climbed over 27 percent in FY24, while Sensex surged over 23 percent.

Market experts expect the bull trend in large cap stocks to remain intact going ahead even as some uncertainty owing to 2024 general elections may worry investors.

Ajit Mishra, Senior Vice-President of Technical Research at Religare Broking, expects Nifty to surge up to 25,500 in financial year 2024-25 (FY25) supported by heavyweight stocks. However, on the downside, he underlined a strong support of 19,500-20,000 for Nifty.