Beware! Blind investing in smallcaps won’t make you money as 148 of 250 stocks tumble in 2026
More than half of the Nifty 250 stocks have delivered negative returns in 2026 despite the index gaining over 7%. Experts flag elevated valuations and persistent FII selling, stressing selective stock picking as earnings growth and performance diverge across market segments.
Investing solely in smallcap stocks has not yielded profits in 2026. Out of the top 250 stocks in the Nifty 250, 148 have suffered losses, with some reaching as high as 70%. Nonetheless, the index has still managed to rise more than 7%, highlighting a disconnect between individual stock returns and the overall index gains. This is in stark contrast to the past three years, when 45 stocks delivered multibagger returns, with gains up to 963%.
However, in 2026, the rally has not been widespread, with more than half of the index falling into the red. The Iran war, persistent FII selling, high valuations, and fears of higher interest rates have negatively impacted the market.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
