The BSE Smallcap index continues to struggle, extending its losing streak to a fourth straight session on February 27, even as Sensex and Nifty 50 remained relatively stable.
- As of 11:20 AM, the BSE Smallcap index was down 1.84%, while the BSE Midcap index was lower by 0.97%.
- February’s track record for smallcaps remains weak, with 12 out of the last 17 years delivering negative returns.
- This month, the BSE Smallcap index is on track for a sharp decline of -11.62%, marking a significant correction.
Key Losers & Gainers in Smallcap and Midcap Segments
Top Losing Stocks in BSE Smallcap Index
| Stock |
Change (%) |
| RSystems |
-6.98% |
| Inox Wind |
-6.85% |
| Precam |
-6.63% |
| EMBDL |
-6.38% |
| JBMA |
-6.36% |
Top Gaining Stocks in BSE Smallcap Index
| Stock |
Change (%) |
| Sanghvi Movers |
+5.40% |
| Sterling Tools |
+5.37% |
| MPS Ltd |
+4.47% |
Top Losers in BSE Midcap Index
| Stock |
Change (%) |
| Suzlon Energy |
-4.18% |
| Rail Vikas Nigam |
-3.93% |
| Dixon Technologies |
-3.20% |
Top Gainers in BSE Midcap Index
| Stock |
Change (%) |
| AU Small Finance Bank |
+6.08% |
| L&T Finance |
+9.75% |
| Muthoot Finance |
+3.52% |
| Aditya Birla Capital |
+3.52% |
1. Historical February Weakness
- Seasonality plays a role, with February historically being a weak month for smallcaps.
2. Global Market Concerns & Foreign Outflows
- Concerns about US President Donald Trump’s reciprocal tariffs are adding uncertainty.
- Weak global cues and continued foreign investor outflows are weighing on the market.
3. Valuation Concerns in Smallcaps & Midcaps
- Experts warn that midcap and smallcap stocks remain overvalued, despite the correction.
- Amish Shah, Head of India Research at Bank of America Securities, remains cautious about the space.
- Kotak Institutional Equities analysts predict that largecaps may remain rangebound, while some “narrative” smallcap stocks could face steeper corrections.
Outlook for Smallcap & Midcap Stocks
- With smallcap valuations stretched, further downside risks remain if market sentiment remains weak.
- Largecaps may offer relative stability, while selective smallcap & midcap stocks with strong fundamentals may still be attractive for long-term investors.
- Investors should remain cautious and focus on quality stocks instead of speculative trades.
