BSE Smallcap index hits over 7-week low in trade; Symphony, CMS Info slip

The BSE Smallcap index is trading lower for the fourth straight day, quoting at its lowest level since September 30, 2025.

Smallcap companies shares price today

 

Shares of smallcap companies are under pressure with the BSE Smallcap index hitting seven-week low in Friday’s intra-day trade. The BSE Smallcap index is trading lower for the fourth straight day, falling 2.2 per cent. It is quoting at its lowest level since September 30, 2025.

 

At 10:41 AM; BSE Smallcap index, the top loser among broader indices, was down 1.05 per cent at 52,141.15. In comparison, the BSE Sensex and BSE Midcap index were down 0.43 per cent and 0.92 per cent, respectively. 

In the short-term, analysts expect the small-caps to remain under pressure due to liquidity constraints. 

 

"Continued boom in the primary market, said G Chokkalingam, founder and head of research at Equinomics Research, is causing liquidity crunch, especially in the small-cap segment. Expected expiry of lock-in for many newly listed IPOs and severe correction already seen in many small-cap stocks is adding to the liquidity constraint for the retail investors," he said.

 

As a strategy, he recommends investors allocate around 50 per cent of their investment to Sensex and Nifty stocks.

 

Among stocks, Jaiprakash Power Ventures, Banco India, Spectrum Electrical Industries, RIR Power Electronics, Allcargo Logistics, Jubilant Agri and Consumer Products, Pakka and Marathon Nextgen Realty from the smallcap index were down in the range of 4 per cent to 7 per cent in intra-day trade.

 

Total 25 stocks including Symphony, Aurionpro Solutions, CMS Info Systems, United Foodbrands, Praj Industries, Ramkrishna Forgings, Route Mobile and Five-Star Business Finance have hit their respective 52-week lows on the BSE.

 

Why Smallcap index underperforming market?

 

The July to September 2025 quarter (Q2FY26) performance in terms of market capitalisation, analysts at JM Financial Institutional Securities see that the proportion of misses was the largest in smallcaps, followed by mid-caps and then large caps; 32 per cent of small-cap companies missed expectations, while the misses were lower in mid-caps and large caps at 27 per cent and 26 per cent respectively.

 

In Q2, small caps outperformed expectations with 31 per cent profit after tax (PAT) growth after lackluster quarters, adding 5 per cent to the earnings driver, supported by 10 per cent sales growth and sharp margin gains (EBITDA up 165bp & PAT up 109bp). Growth was led by sectors, such as auto, discretionary and a strong loss to profit reversal in small cap energy sector, according to analysts at Elara Capital.

 

The brokerage firm said they remain encouraged by the small-cap rebound, but Q3-Q4 will determine durability of this recovery and the broader earnings cycle. The brokerage firm said its cap-tier preference is Mid-Cap first, followed by Large Cap, and then Small Cap. If Q3 earnings for small caps sustain momentum seen in Q2 and earnings upgrades of small caps materialize, analysts will reassess this pecking order from a top-down perspective.

 

The Q2 earnings performance of the Nifty-500 was fueled by mid- and small-cap companies. Aggregate earnings of the Midcap-150 companies grew 27 per cent YoY, while Smallcap-250 companies recorded a 37 per cent YoY growth. In comparison, earnings growth for the large-caps (Nifty-100 const.) stood at 10 per cent YoY, according to Motilal Oswal Financial Services.