Small-caps off to the best start in four years; surge more than 25%

Outperformance to Nifty sharpest in more than a decade

Companies in the sm­all-cap universe are having a dream run — the Nifty Smallcap 100 index has shot up more than 25 per cent on a year-to-date basis, even as the benchmark Nifty is up 7 per cent. 

This is the best start for the index since 2017 when the Nifty Smallcap 100 index surged 32.3 per cent between January 1 and May 10. However, in terms of outperformance to the Nifty, this year’s performance is the best in more than a decade.

A combination of sectoral tailwinds and lack of institutional selling pressure has helped small companies escape from the correction