📉 Smallcaps Suffer Their Worst Year Since 2018 — Will 2026 Bring a Turnaround?

India’s smallcap index tumbled 9.5% in 2025, marking its steepest correction in seven years. Valuations cooled sharply as earnings failed to keep pace, leaving retail investors with heavy losses while institutions shifted to safer largecaps. Analysts warn that a recovery now depends on either stronger earnings or cheaper valuations — neither visible yet. #SmallcapCrash #StockMarket2025 #MarketCorrection #RetailInvestors #MarketOutlook2026 #IndianStocks