Investing in smallcap stocks alone has not been enough to make money in 2026. As many as 148 of the 250 stocks in the Nifty 250 have delivered negative returns this year, with losses stretching as much as 70%. Yet, the index has gained more than 7%, underscoring a growing disconnect between index-level gains and the returns investors would have earned from individual stocks.
The contrast with the past three years is striking. As many as 45 stocks in the index delivered multibagger returns over that period, with gains reaching up to 963%. But the rally has been far from broad-based in 2026. While a handful of stocks have continued to surge, more than half the index has slipped into the red, making stock selection increasingly important in a market where the headline index performance tells only part of the story.
