Small Cap Stocks Update

The small-cap segment of the Indian stock market has been witnessing strong momentum lately as sentiment improves, driven by a fall in crude oil prices from a multi-year high, signs of easing tensions in West Asia, and strong retail participation. The Nifty Smallcap 250 index has gained over 13% on a month-to-date basis as of 16 April, compared with an 8% rise in the benchmark Nifty 50. Small-cap stocks, such as Ola Electric and Gallantt Ispat, have surged up to 70% this month. In fact, more than 230 stocks in the Nifty Smallcap 250 index are in the green in April so far, with as many as 175 stocks rising more than 10%. On Friday, 17 April, the Nifty Smallcap 250 index rose by more than 1% during the session, even as the Nifty 50 was up by half a per cent.