While describing midcaps as a stock-specific universe, analysts attributed the outperformance to healthy valuation normalisation in the segment over the past few quarters
Several SMID companies are trading at substantial premiums to historical averages, reflecting expectations of uninterrupted earnings growth. That assumption may prove fragile, says Apurva Sheth
Among 1,262 stocks from the BSE Smallcap index, over half, or 734 stocks, outperformed in April by recording more than 20 per cent return, data shows.
From their February 27, 2026, level, the Nifty Smallcap 100 index rallied 6.5 per cent, while the Nifty Midcap 100 index gained 2.2 per cent. In comparison, the Nifty 50 and BSE Sensex are still down.
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Small-caps, according to Jaipuria, are a classic "buy pessimism, sell euphoria" trade, he said.
Kunal Kamble is bullish on smallcaps Cupid, MMTC and South Indian Bank as the Nifty SmallCap 250 index attempts a breakout above its 200-DMA on the daily chart.
Small and midcap indices rebound sharply to pre-war levels, outperforming benchmarks on attractive valuations and stronger recovery from earlier selloff
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The Indian equity market was trading sharply higher, driven by hopes of de-escalation in the war between US-Israel and Iran
Elara said the Nifty50 is currently trading at around 17.3 times one-year forward earnings, nearly 7 per cent below its 10-year average of 18.6 times, placing it in a historical 'bounce zone'
At the close, Sensex jumped 1,372.06 points or 1.89 per cent to settle at 74,068.45. Similarly, the Nifty 50 index ended 399.75 points or 1.78 per cent higher at 22,912
In the smallcap segment, BLS International Services led the gains, quoting higher by 14.6 per cent
On the Nifty Midcap 100, Hindustan Petroleum stock was the top loser, down 4.35 per cent at ₹334.35 per cent
Analysts said that mid and small cap stocks are currently absorbing the impact of a broad-based domestic and global sell-off
Q3FY26 marked a good cyclical improvement in growth, though it may need one or two quarters to call it a decisive earnings inflection, said Vora
Sunny Agarwal of SBI Securities said that going ahead, the financial services sector will lead, which includes banks, both public sector (PSU) and private
The momentum in the IPO market has slowed significantly in recent weeks, with only five mainboard issues launched so far in 2026 and four more expected to open in the coming week
Small and mid-cap stocks (SMIDs) extended their slide on Monday as Budget 2026's proposal to double STT on F&O trades triggered liquidity concerns.
Motilal Oswal said the Nifty is trading at a 12-month forward P/E of 21.2x, near its long-period average of 20.8x, suggesting valuations are reasonable.