BSE Smallcap Index Down for Fourth Consecutive Session, Poised for Double-Digit Loss in February
BSE Smallcap Index Down for Fourth Consecutive Session
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%
Why Are Smallcap and Midcap Stocks Underperforming?
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.
Sourabh Sharma
Sourabh loves writing about finance and market news. He has a good understanding of IPOs and enjoys covering the latest updates from the stock market. His goal is to share useful and easy-to-read news that helps readers stay informed.