Smallcap stocks, which were among the worst hit during last year's market correction and the weak start to 2026, have staged a sharp comeback, with several names more than doubling from their 52-week lows. The Nifty Smallcap 250 index is now up 11% so far this year, marking a strong recovery from the bear-market phase that gripped the broader market earlier. Nearly half of the stocks in the index have jumped 30% or more from their 52-week lows, while only about 10 stocks are still trading near their lows.
The rebound shows that investors have returned to smaller companies after a painful correction. At the start of the year, the damage in the broader market was deep. Among listed companies with a market cap of more than Rs 1,000 crore, over 64% had fallen 30% or more from their all-time highs. Nearly 78% had fallen at least 20%, showing that a large part of the market had already slipped into bear-market territory.
