Smallcap stocks
Covid-era bargains in largecaps, bull market valuations in smallcaps: Where is the real opportunity in stocks?
Indian equities are split sharply between largecaps and smaller stocks. The Nifty is down 14% in 2026, while midcaps have fallen just 2%, smallcaps have gained 8% and microcaps 15%. Record FPI selling of ₹2.8 lakh crore has hit largecaps hardest, making beaten-down largecaps look relatively attractive while elevated smallcap valuations leave little room for earnings disappointment.
HDFC Flexi Cap Fund turns Rs 10,000 SIP into Rs 23 crore in 31 years, AUM crosses Rs 1 lakh crore
HDFC Flexi Cap Fund turned a Rs 10,000 monthly SIP into Rs 22.96 cr in nearly 31 years. The fund has delivered a CAGR of 18.37% since inception and outperformed the NIFTY 500 Index (TRI) in 21 of 31 calendar years.
Half of India’s MTF book is in smallcaps; Nithin Kamath flags liquidity risks
Zerodha founder Nithin Kamath warned that small and microcap stocks account for a substantial share of India’s margin trading facility book. He highlighted liquidity risks during market downturns, when smaller stocks may face sharper selling pressure.
Nifty valuations near post-Covid lows. Alchemy Capital’s Alok Agarwal explains what investors should buy now
Nifty valuations have reset sharply from 2024 levels and are now near post-Covid lows, says Alchemy Capital’s Alok Agarwal. He sees the next phase of market growth broadening beyond large caps. Mid- and small-caps, AI infrastructure, healthcare, manufacturing and select defence companies offer opportunities, while global yields and FPI flows remain key.
Kotak warns small and midcap euphoria may turn sour as investors chase quick returns
India’s stock market shows a sharp divide, with investors favouring small and midcaps despite stretched valuations while overlooking relatively attractive largecaps. Kotak Institutional Equities says price momentum and popular growth narratives are driving sentiment more than underlying value and fundamentals.
Friday heavy lifting saves Nifty from record nine weeks of losses. Can bulls take charge now?
Nifty broke its eight-week losing streak, rising nearly 1.3% on Friday to close above 22,500 as IT, FMCG and auto stocks led a relief rally. However, persistent FII selling, elevated US bond yields, crude oil prices and the RBI’s shift to calibrated tightening continue to cloud the market outlook.
All 36 smallcap mutual funds deliver double digit returns in 6 months. Should you invest more or book profits?
In the last six months, all 36 smallcap mutual funds have achieved impressive double-digit returns, averaging around 25.20%. This indicates a robust recovery from prior dips. Financial experts advise investors to keep up their SIPs if they can handle the volatility. With smallcap valuations currently elevated, future success will hinge on sustained earnings growth.
Cupid shares rally 16% in two sessions. What’s behind the sharp uptick in the multibagger stock?
Cupid shares surged 7% after entering the Nifty Smallcap 250 index, extending gains to 16% in two sessions. The company has raised FY27 revenue and profit guidance following strong quarterly growth. Nuvama estimates around $10 million in potential inflows, while Cupid targets continued expansion across healthcare exports and consumer businesses.
Nifty nears longest losing streak in 25 years. Can bulls stop the 8th consecutive weekly selloff?
Indian equities face continued pressure from global uncertainty, crude prices and foreign investor outflows, but analysts see domestic resilience and moderating valuations providing support. The Nifty has become relatively cheaper after its recent correction, with earnings still growing. However, the near-term outlook hinges on the index holding 22,600 and attracting sustained buying to prevent an eighth consecutive weekly decline.
Motilal Oswal sees 4 factors boosting risk-reward after market’s sharp fall from 2024 high, lists 27 stock picks
Motilal Oswal Financial Services sees improving risk-reward for Indian equities as valuations cool, earnings recover and domestic liquidity remains strong. The brokerage also highlights sectoral rotation and names 27 stocks across large-, mid- and small-cap segments as top ideas.
Sensex jumps 299 points, Nifty closes near 23,450 as oil dips below $99/barrel. What can trigger the next sharp rally on D-Street?
The Indian stock market closed positively on Wednesday, with Sensex climbing over 299 points to stand at 74,828, and Nifty gaining roughly 118 points to reach 23,447. Broader market indices also performed well, with Nifty Midcap 100 and Smallcap 100 showing increases of up to 0.9%. Major sectors like metal and FMCG had significant upticks, while IT stocks underperformed.
800% gains, 106 multibaggers in 3 years; now every second Nifty 500 stock is down in 2026. Time for caution?
After a three-year rally featuring 106 multibaggers, over half of the Nifty 500 stocks are down in 2026 amid $30 billion in FII outflows and geopolitical risks. As broader market valuations stretch, analysts advise caution, with leading fund managers highlighting better risk-reward comfort in largecap equities.
ETMarkets Smart Talk | Don’t chase growth at any valuation; rising US yields can pressure P/E multiples: Manish Kumar
Midcap and smallcap stocks are hitting record highs, but rising valuations and higher US Treasury yields could challenge the rally. ICICI Prudential Life Insurance CIO Manish Kumar discusses earnings visibility, domestic liquidity, FII selling, IPO supply and valuation discipline, while explaining why investors should avoid chasing growth at any price.
Bank of India MF CIO Alok Singh sees banks poised for a re-rating. Here’s what could trigger it
Bank of India Mutual Fund CIO Alok Singh sees scope for banks to re-rate as low NPAs, healthy returns and loan growth support fundamentals. He expects policy announcements and stronger business numbers to ease concerns around NIMs and FCNR flows, while capital goods, banking and metals could deliver stronger earnings momentum.
Market wrap: Adani Ports, Adani Ports SEZ, TCS, Tata Motors PV top gainers and losers on Nifty and Sensex on Friday
Indian equities ended higher on September 18, led by softer crude prices and supportive Asian cues. Nifty gained 0.31%, while Sensex rose marginally. Midcaps and smallcaps advanced over 1%, volatility eased, and Adani Ports topped Nifty gainers with a 4.94% rise.
$1.5 trillion wealth transfer is coming. How India’s next-gen HNIs are rebuilding family portfolios
Next-generation HNIs are reshaping family portfolios with greater diversification, formal asset allocation and global exposure. Motilal Oswal Private Wealth's Akash Hariani discusses private markets, pre-IPO investing, Indian equities, overseas assets and portfolio strategies for the next decade.
AI’s 3 musketeers are hitting the brakes. Why Jefferies’ Chris Wood sees India midcap stocks regaining favour
India’s domestic economy is showing resilience despite geopolitical and energy risks, with stronger bank credit, corporate lending and earnings growth. Jefferies’ Chris Wood sees a potential reversal in the AI trade as another catalyst for global investors to refocus on India. He also favours mid- and small-caps, while highlighting domestic flows, gold loans and energy risks as key market drivers.
ETMarkets Smart Talk| India less vulnerable to US rate shocks, but expensive midcaps remain at risk: Amar K Ambani
Indian equities are better positioned to withstand global rate shocks due to strong domestic liquidity, but expensive mid- and small-cap stocks remain vulnerable to rising US yields and earnings disappointments, says YES Securities’ Amar K Ambani. He expects quality smaller companies to deliver alpha but stresses the need for greater selectivity.
Ahead of Market: 10 things that will decide stock market action on Friday
Indian equities ended mixed on Thursday as Sensex slipped 22 points after sharp volatility during the closing auction session, while Nifty gained 53 points. Mid- and small-caps outperformed, with capital goods, industrial, defence, power and healthcare stocks attracting buying interest.
Sensex rises 200 points, Nifty above 23,300 as oil prices cool down. What lies ahead?
Sensex and Nifty traded higher as crude oil prices eased to around $104 per barrel, while mid- and small-cap indices outperformed. Buying was broad-based outside the IT sector, with analysts identifying opportunities in select large-cap stocks despite elevated global bond yields.
Six factors, 250 stocks and one model: How JioBlackRock is building portfolios
JioBlackRock Mutual Fund’s Balanced Advantage Fund uses a rules-based model combining global risk sentiment with four local signals to decide equity allocation. The model then evaluates 250 stocks across six factors, including momentum, value, quality and sentiment. BlackRock’s Aladdin platform weighs alpha, risk and trading costs to build a portfolio of 50-75 stocks.
BofA turns bullish on Nifty after 2 years, cautious on small, midcaps. Here's what it expects now
BofA Securities has turned constructive on the Nifty after two years, seeing 12% upside to 26,200 by December 2026. The brokerage said five of eight earlier risks have played out, while primary market issuances, Fed rate hikes and AI disruption remain concerns. It also turned cautious on small- and midcaps.
Midcap rally hides a deeper split: Every second stock down but index up 11% in 1 year. Are investors walking on thin ice?
The Nifty Midcap 150 has gained around 11% over the past year, outperforming the Nifty’s 6% decline. However, the gains have been uneven, with more than half of its constituents still in the red and some down as much as 70%. SKF India, KPIT Tech, Syngene International, RVNL, Tata Elxsi and Emami are among the notable laggards.
Market wrap: HDFC Bank, Dr Reddys, Hindalco, JSW Steel top gainers and losers on Nifty and Sensex on Friday
Indian equity markets ended the week lower as crude oil prices surged and global rate concerns pressured sentiment. Nifty fell 0.34%, while Sensex gained 0.16%. Midcaps and smallcaps declined, volatility rose, with metals and realty stocks leading losses on Friday.
JioBlackRock Flexi Cap Fund exits NALCO, Hindustan Zinc; trims exposure in BSE, RIL
JioBlackRock Flexi Cap Fund reshuffled its portfolio in August, exiting 21 stocks while reducing exposure to 34 others, including NALCO, Hindustan Zinc and RIL. It increased holdings in 17 stocks and added 22 new names. The fund’s portfolio grew to 136 stocks, with banks accounting for its largest sector allocation.
NFO Alert: Edelweiss Mutual Fund’s Altiva SIF launches equity long-short fund
Edelweiss Mutual Fund has introduced the Altiva Equity Long-Short Fund, designed to achieve long-term capital growth through strategic equity investments. The fund's new offering is available for subscription until September twenty-fourth and features a balanced large-cap portfolio complemented with an income-oriented derivatives aspect. This investment opportunity is ideal for those with a time horizon of three to five years.
Buying the smallcap rally? Bear market’s biggest losers crash further in 2026 after falling up to 80%
In 2026, the performance of smallcap stocks presents a contrasting picture, with half of the top 25 performers bouncing back from significant losses last year. Kabra Extrusiontechnik stands out with a remarkable 150% increase following a previous 59% drop. Conversely, Parsvnath Developers has suffered an additional 85% decline, emphasizing how essential fundamentals are over mere price fluctuations.
Nifty drops 4% in less than 5 weeks despite attractive valuations in largecaps. What can reverse this trend?
Despite their appealing valuations, Indian largecap stocks are currently on a downward trend. Meanwhile, the mid and smallcap sectors are enjoying consistent monthly SIP inflows. Analysts predict that a trend reversal for largecaps is on the horizon, spurred by upcoming mega IPOs from NSE and Jio. Investors are encouraged to prioritize largecap stocks with robust earnings visibility.
From the ashes of bear-market: Over 125 smallcap stocks soar up to 300% from 52-week lows
Smallcap stocks have shown a stunning revival after hitting recent lows, with numerous companies experiencing value increases over double their 52-week lows. This robust recovery is backed by better earnings reports and a resurgence in investor confidence. The positive trends span multiple sectors, indicating a broad-based rebound as investors increasingly redirect their focus toward smaller companies following a challenging correction period.
Kaynes Tech, Wockhardt, Persistent Systems shares fall up to 5% as broader markets tumble. What lies ahead?
The stock market saw marked declines on Monday, particularly among smallcap and midcap shares. Persistent Systems and National Aluminium Company experienced prominent losses, contributing to the negative performance of the Nifty Midcap 100 and Smallcap 100 indices. Influenced by the Federal Reserve's remarks and increasing oil prices, investors are pivoting to prioritize growth opportunities over traditional value stocks.
4 smallcaps with up to 332% PAT growth just surged 170%: Can the outperformance continue?
Smallcap stocks led Nifty-500 earnings growth in 1QFY27, with the Nifty Smallcap-250 reporting 35% YoY growth. While strong earnings, domestic inflows and themes such as power continue to support the rally, elevated valuations and narrowing market breadth highlight the need for selective investing.
Is the smallcap rally a trap? Only 37% of stocks are outperforming their benchmark
India's recent smallcap surge indicates that less stock is outpacing the benchmark index, revealing a narrowing group of successful stocks boosting overall returns. Conversely, largecap stocks are showing wider engagement even as they lag in market performance. While the NSE 500 reflects enhanced market breadth, individual stock gains are waning, presenting investors with a challenging environment requiring careful selection amidst higher valuations.
Nifty drops 7% in 2026, smallcaps gain 13%. Is it time to bet on broader markets?
This year has seen smallcap stocks surge ahead of the Nifty 50 index, with the Nifty Smallcap 100 rising nearly thirteen percent while its larger counterpart has faltered. The driving forces behind this rally include robust liquidity and significant mutual fund investments. Analysts forecast a positive outlook on smallcaps, suggesting that investors might consider increasing their stakes during market dips for continued growth.
697 days, no record high: Sensex hits worst two-year return stretch since 2012. Will this end soon?
The Sensex has gone 697 days without a new record high, marking its longest stretch of weakness in years. In 2026, 37% of trading days have delivered negative two-year returns, the highest share since 2012. However, easing FII selling, resilient domestic flows and potential foreign inflows could support a recovery.
In favour! FIIs buy 7 multibaggers that soared up to 730% after 2 quarters of selling
After a period of significant sell-offs, foreign investors are making a strategic move by purchasing select Indian stocks demonstrating remarkable performance over the past year. In July alone, FIIs acquired shares worth Rs 11,045 crore, followed by Rs 13,123 crore in August. The notable 730% rise in Cupid's stock highlights this renewed investor confidence, emphasizing a trend towards quality growth companies amid strong sector advantages.
Indian equity markets rally nearly 1% as dollar retreats and US bond yields cool
The Indian stock market rebounded on Thursday, marking the end of a downward trend. Major indices Nifty and Sensex enjoyed notable gains, supported by a robust response in midcap and smallcap sectors. A weakening dollar index alongside declining US bond yields positively impacted emerging markets. Nonetheless, bond yields in India increased, influenced by recent hawkish policy discussions.
Top FPIs ride out storm, outrun Nifty & Sensex in Q1
During the June quarter, leading international funds encountered remarkable gains within Indian equities, significantly boosting their reported portfolio values. This strong performance exceeded that of key Indian stock market indices, primarily driven by astute investments in mid- and small-cap companies, reinforcing India's reputation as a promising landscape for discerning stock pickers.
PMS Tracker: Amaltas, Pluswealth Capital, Emkay, 7 others deliver up to 11% returns in July
Multi-cap and flexi-cap PMS strategies dominated July’s top performers, with six of the 10 best portfolios gaining over 5%. Amaltas Strategic Opportunities led with 10.54%, while strong broader-market gains supported robust PMS performance despite geopolitical tensions.
Bonus issue alert! This smallcap infra stock that jumped 50% in a month has declared 1:1 bonus issue
Chavda Infra has announced a 1:1 bonus issue, with shareholders set to receive one additional share for every share held. The Ahmedabad-based infrastructure company’s stock has surged 53% in a month and 71% from its 52-week low, taking its market capitalisation above Rs 439 crore.
INDO-MIM, Ather Energy and TCS among stocks bought and sold by mutual funds in July
Mutual funds bought Rs 15,900 crore of stocks in July while FIIs sold Rs 11,000 crore. Axis Bank, INDO-MIM and Kotak Mahindra Bank saw major buying, while ICICI Bank, Eternal and Reliance Industries faced selling. Buying remained strong across large, mid and smallcap segments, reflecting active portfolio repositioning by fund managers.
Nifty Smallcap 250 hits 52-week high as Ola Electric, other stocks rally up to 7%. What lies ahead?
Broader markets rallied on Wednesday, with the Nifty Smallcap 250 gaining nearly 1% to hit a fresh 52-week high, supported by strong smallcap earnings and easing valuations. The index climbed close to its September 2024 record, while the Nifty Smallcap 100 also hit a fresh all-time high.
Stock split alert! Last day to buy this smallcap stock that rallied 580% in 3 years. Do you own?
According to SEBI's T+1 settlement cycle, investors must buy a company's shares at least one trading day before the record date to ensure the shares are credited to their demat accounts in time, and they become eligible for the corporate action.
India’s market rally is just getting started: Emkay strategist on IT, smallcaps and sectors to buy
We believe the market is in the early stages of a broader rally. Recent resilience suggests a durable bottom is forming, supported by two key drivers: a broad-based earnings recovery across sectors and the return of FPI inflows (Rs 202bn in Jul-26), which should sustain market momentum.
Thangamayil Jewellery shares crash 32% in a week. What should investors do?
Thangamayil Jewellery shares fell 5%, extending their one-week decline to 32%, after the company said it saw no visible improvement in sales during the first 28 days of Q2 FY27. The jeweller attributed the weakness to higher import duty, rupee depreciation, geopolitical uncertainty and continued customer reluctance amid expectations of lower gold prices.
F&O Talk: Smallcaps look strong on charts, says Sudeep Shah; outlines Trent, Swiggy, Kalyan Jewellers strategy
SBI Securities’ Sudeep Shah expects Nifty to remain rangebound, with 24,300–24,800 as key levels. He prefers a buy-on-dips strategy, citing constructive trends. Smallcaps remain bullish, while FII short covering could support markets. Traders should watch key technical levels for Nifty, Trent, Kalyan Jewellers and Swiggy for directional cues.
Smallcap stocks rake in big gains in FY22 with up to 36% returns
The smallcap index reached an all-time high of 31,304.44 on January 18 this year, after hitting its 52-week low of 20,282.07 on April 19, 2021.
9 microcap multibaggers: How India's stock market minnows beat every major index in six months
India's smallest listed stocks delivered the strongest market run in six months. The Nifty Microcap 250 index rose eleven percent, beating other size indices. Sterlite Technologies led gains with a four hundred twenty-four percent return. Fund managers expect earnings growth in smaller companies to improve soon. However, microcap stocks carry risks of sharp corrections and liquidity issues.
Smallcaps usher in 2024 with a bang as over 100 stocks see double-digit weekly gains
About 12 smallcap stocks have gained over 25%, with Alok Industries being the topper with a 52% surge. It was followed by Sun Pharma Advanced Research, Inox Green Energy Services and Waaree Renewable Tech.
Rs 13 lakh crore boom, but Q4 sends a wake-up call to smallcap investors
Despite retail investors pumping money into smallcap stocks amid a ₹13 lakh crore rally, Q4FY25 earnings paint a worrisome picture. Data from JM Financial and Motilal Oswal show that smallcaps recorded the highest proportion of earnings misses, with 31% of companies underperforming and overall PAT plunging 16% YoY. Experts caution that smallcaps remain overvalued relative to earnings, urging selective stock picking over broad-based exposure.
Midcap, smallcap rally has eroded margin of safety, rotate to largecaps: Axis Direct's Rajesh Palviya
Axis Direct suggests a selective shift towards large-cap stocks now. Mid and small caps show stretched valuations after their recent surge. The Nifty 50 trades near its long-term average, offering better comfort. Corporate earnings delivery and margin defense are key for market upside. Investors should focus on quality large-caps with clear earnings visibility.
For investors with slightly higher risk appetite: 4 smallcap stocks with upside potential of up to 32%
After a phase of correction in which we saw sharp decline in the stocks prices, the small cap stocks segment has been able once again inch upward. Lower oil prices, softer inflation numbers are probably triggering this part of the rally. However, small caps are always the riskiest place to take espouse when it comes to equity. But it is also a space where if one is able to find the right stock at the right time, gains are much higher. So a space with the highest risk and highest reward. While risks are an integral part of the markets, one can not eliminate it but reduce it. How you do it, by putting additional criteria of quantitative and qualitative checks. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
Stay bullish, just calibrate risk by staggered buying: 4 smallcap stocks with upside potential of up to 38%
Lower oil prices, softer inflation, better than expected GDP numbers and now higher probability of continuation of policies post election 2024. There are multiple reasons for small caps to stay in the focus of investors. But whatever the condition or tailwinds, one basic principle should never be forgotten. When it comes to equity as an asset class, small caps are always the riskiest place to take exposure so always be caution. Now, on the other hand, if one is able to find the right small stock at the right time, gains are much higher. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
A century to savour! Over 100 smallcap stocks deliver double-digit gains as bulls prevail after five weeks
During the week, over 100 smallcap stocks delivered double-digit weekly returns with 15 of them offering over 25% gains. RailTel was the top gainer in the smallcap pack with 46% return, followed by India Pesticides (41.9%), Optiemus Infracom (36.3%) and HLV (33.7%).
Smallcaps: Narrative will go against them time & again, own the right stock. 5 smallcap stocks for long-term investors
Saying that I am a long term investor and being a long term investor are two different things. One is a statement and the other is an experience. The second one includes hard work and going against the narrative and holding the stock for the long term. At this point of time, the desire to own a small cap is very high because of the recency bias, but two days of correction and one starts to question why invest in small caps. As the global markets witness a correction, there is a probability that we might see some more correction in the market and that is what might once again create a narrative against small caps. But if you own the right stocks, don't bother. But make sure you have the right stock and not the ones which are essentially low priced in absolute terms and bought due on tip.
For investors with risk appetite: 4 smallcap stocks with upside potential of up to 37%
Last one month has been a dream run for small cap stocks, a number of them have been able to scale new highs. One reason why small caps often tend to do well is because of the lack of liquidity in the stock. A bit of buying leads to sharp up moves in stock price. The same low liquidity becomes the root cause of trouble when one is selling, a small amount of selling and the price dip very sharply. So besides fundamentals which are the key to investing, also keep an eye on the liquidity of stocks. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate small cap space.
Benchmark indices fall amid rising crude oil prices and West Asia conflict
India's benchmark indices ended lower on Wednesday, as crude oil prices increased. The Nifty50 and Sensex experienced significant drops, falling below key levels. Midcap and smallcap stocks also saw declines, reflecting broad market weakness. Most sector indices ended in negative territory, except for FMCG and Auto. Brent crude oil prices rose, impacting investor sentiment across the market.
Madhusudan Kela-backed Singularity Equity Fund picks stake in this smallcap stock via block deal worth Rs 12 crore
Madhusudan Kela-led Singularity Equity Fund I acquired 5.27 lakh shares of TIL through a bulk deal worth Rs 11.78 crore. The PMS fund bought the shares at an average price of Rs 223.72 apiece, around 15% below the stock’s closing price of Rs 262.48 on Wednesday.
For investors with risk appetite: 4 smallcap stocks with upside potential of up to 36%
The risk on trade, which essentially means taking exposure to the riskier asset class started once again. In India, this meant that once again, small cap stocks, which are the riskiest place to invest both in terms of business uncertainty and stocks liquidity risk, once again witnessed more activity. All those investors who have increased their exposure to small caps in the recent past or are thinking of increasing their exposure should put more checks and balances before investing in this space. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
Smallcap sale! 4 counters trading less than half of book value. Time to buy?
A study of BSE500 stocks shows that there are at least 4 smallcap counters that are trading below half of their book value. In other words, their PB ratio has gone below 0.50x. Whenever the indicator slips below 1, the underlying is usually believed to be underpriced by the market. Buying a company's stock for less than the book value is seen as a margin of safety by value investors.
2 smallcap-heavy PMS portfolios more than double investor money in FY22
Counter Cyclical Investment’s Long Term Value Investment strategy came in second to deliver 121 per cent return. The fund holds 49 stocks, all smallcaps, in the portfolio. Its top five holdings are Ambika Cotton Mills, Orient Bell, Allcargo Logistics, Garware Hi-Tech Films and Apollo Sindoori Hotels.
