
NEW DELHI: Investors are dumping smallcap stocks like never before. So far in January 2025, the Nifty Smallcap 100 has plummeted by over 13%, its worst monthly fall since the COVID-19 pandemic month of March 2020.
The Nifty midcap 100 index is also under pressure and has declined 9.45% this month.
Over the past five trading sessions, the Nifty Small-cap 100 has shed 9%, significantly underperforming the benchmark Nifty’s 2% decline. The sharp fall in smallcap stocks comes after years of outperformance. Experts said a large number of midcap and smallcap stocks are unable to justify their valuations. December quarter results reported by small-cap companies in the past few days are far below street estimates. As per Trendlyne data, 85 stocks in the Nifty Smallcap 100 index are currently trading 20% to 60% lower than their respective one-year highs.