The second stress test results of mid-cap and small-cap mutual fund schemes showed improvement in liquidity position at some large funds, data from the Association of Mutual Funds in India (Amfi) showed.

Market participants said the improvement could have come on the back of fund managers actively focusing on stocks which are more liquid, as well as natural market process where average volume might have risen.

Of the 10 largest small-cap funds, 5 saw improvement in their liquidity position in March, while 3 of the 10 largest mid-cap funds also showed similar results.

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