Top 10 PMS Funds Post Positive Returns in September Despite Market Crash; Cupid and Sterlite Among Top Picks

The Quick Take

• All 10 top-performing equity PMS strategies delivered positive returns in September 2026 despite a sharp Indian market downturn, ranging from 3.55% to 5.67%.
• Cupid Limited and Sterlite Technologies are among the most-held smallcap stocks across top PMS strategies, with Nifty and Sensex down up to 13% from highs.
• The divergence between PMS outperformance and benchmark underperformance reflects quality stock selection in high-conviction niche businesses with limited global correlation.

Synthesized from 1 source.

Portfolio Management Services (PMS) strategies in India delivered positive absolute returns in September 2026 even as the Nifty and Sensex fell up to 13% from their peaks, a performance divergence that validates the active stock selection thesis in a volatile market. The 3.55% to 5.67% positive return range across all top 10 PMS strategies — led by Amaltas Asset Management's Keystone Fund — represents significant alpha generation. The common holdings appearing across multiple top portfolios, including Cupid Limited and Sterlite Technologies, provide a market-implicit recommendation for these mid and smallcap stocks.

Cupid Limited, a contraceptive manufacturer with strong government supply relationships, and Sterlite Technologies, a fiber optic cable and digital solutions company, represent the type of niche, defensible businesses that PMS managers favor in volatile markets. These companies operate in segments with limited global correlation and visible domestic demand drivers — healthcare infrastructure spending for Cupid and India's fiber rollout for Sterlite. Their presence in top PMS portfolios suggests professional fund managers see current valuations as attractive relative to long-term growth trajectories.

Track SEBI PMS data releases for Q3 FY27 to see whether these high-conviction positions were maintained or reduced following September returns. Any earnings updates from Cupid Limited and Sterlite Technologies will test whether PMS managers' fundamental thesis is being validated. The macro variable is the direction of domestic institutional flows: strong SIP and PMS inflows insulate quality smallcaps from FII volatility, while any disruption to domestic retail participation would amplify smallcap volatility.