Select rebound: 50 smallcaps jump up to 33% last week
Smallcaps put up a decent show last week, with as many as 50 stocks clocking double-digit gains. According to Ace Equity data, these stocks delivered returns between 10% and 33% over the week, signalling that there are opportunities in the broader market if fundamentals are strong. The rally was led by VTM, which surged 33% in five sessions, followed by Yatra Online, up 29%, and Indigo Paints, which climbed 29%.
Textiles, consumer and niche manufacturing stocks were prominent among the winners. Pearl Global Industries (up 24.18%), SP Apparels (up 17.07%), Indo Count Industries (up 11.89%) and KRBL (up 12.08%) suggested renewed interest in export-oriented and consumption-linked plays.
Yatra Online’s 29.4% gain reflected optimism around travel demand and digital platforms, while Indigo Paints’ 29.27% move pointed to persistent bullishness on premium home-improvement themes. Healthcare and pharma names also featured prominently in the week’s tally. Bliss GVS Pharma rallied 26.39%, Cupid gained 20.17%, KMC Speciality Hospitals (India) rose 13.60%, Krsnaa Diagnostics advanced 11.38% and Thyrocare Technologies added 12.30%.
The breadth of participation across diagnostics, hospitals and pharma midcaps suggests investors are selectively adding to defensive growth pockets as earnings visibility improves.
Analysts say the select smallcap revival is riding on the back of an improving macro and earnings backdrop. "A positive turnaround in Q2 FY26 results and benign inflation are making the H2 FY26 earnings outlook brighter. Investors are looking for additional catalysts for a decisive move from current levels. The upcoming RBI policy meeting and any cues on a US trade deal are expected to keep market sentiment bullish," said Vinod Nair, Head of Research at Geojit Investments.
That macro comfort is being reinforced by the index setup. Nifty’s sustained hold above 25,600 and a Week-2 close above 25,900 signal stronger short-term momentum, with a potential breakout above the 25,950–26,000 band opening room towards 26,200–26,300 and even 26,500 in the near term.
"With the corporate earnings season nearly behind us and a softer inflation print strengthening the case for further monetary easing, investors will now look towards fresh catalysts to drive near-term sentiment," said Ponmudi R, CEO, Enrich Money. Any incremental progress on India–US trade negotiations, along with policy signals on growth and liquidity from the RBI, could determine whether last week’s double-digit smallcap gains mark the start of a broader catch-up rally or just an early burst of outperformance.
Also Read | Midcap mutual funds inflows top small caps for 3 consecutive months. Are investors turning selective?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)
Textiles, consumer and niche manufacturing stocks were prominent among the winners. Pearl Global Industries (up 24.18%), SP Apparels (up 17.07%), Indo Count Industries (up 11.89%) and KRBL (up 12.08%) suggested renewed interest in export-oriented and consumption-linked plays.
Yatra Online’s 29.4% gain reflected optimism around travel demand and digital platforms, while Indigo Paints’ 29.27% move pointed to persistent bullishness on premium home-improvement themes. Healthcare and pharma names also featured prominently in the week’s tally. Bliss GVS Pharma rallied 26.39%, Cupid gained 20.17%, KMC Speciality Hospitals (India) rose 13.60%, Krsnaa Diagnostics advanced 11.38% and Thyrocare Technologies added 12.30%.
The breadth of participation across diagnostics, hospitals and pharma midcaps suggests investors are selectively adding to defensive growth pockets as earnings visibility improves.
Analysts say the select smallcap revival is riding on the back of an improving macro and earnings backdrop. "A positive turnaround in Q2 FY26 results and benign inflation are making the H2 FY26 earnings outlook brighter. Investors are looking for additional catalysts for a decisive move from current levels. The upcoming RBI policy meeting and any cues on a US trade deal are expected to keep market sentiment bullish," said Vinod Nair, Head of Research at Geojit Investments.
That macro comfort is being reinforced by the index setup. Nifty’s sustained hold above 25,600 and a Week-2 close above 25,900 signal stronger short-term momentum, with a potential breakout above the 25,950–26,000 band opening room towards 26,200–26,300 and even 26,500 in the near term.
"With the corporate earnings season nearly behind us and a softer inflation print strengthening the case for further monetary easing, investors will now look towards fresh catalysts to drive near-term sentiment," said Ponmudi R, CEO, Enrich Money. Any incremental progress on India–US trade negotiations, along with policy signals on growth and liquidity from the RBI, could determine whether last week’s double-digit smallcap gains mark the start of a broader catch-up rally or just an early burst of outperformance.
Also Read | Midcap mutual funds inflows top small caps for 3 consecutive months. Are investors turning selective?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)
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