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Nifty midcaps and smallcaps beat Nifty 50 in 2026 so far
Nifty Midcap 100 is up 3.9% year to date, and Nifty Smallcap 100 has gained 9.5%, while Nifty 50 is down 7.6%.
Nifty midcap and smallcap indices have outperformed the Nifty 50 in 2026 to date, with investors focusing on companies seen as having stronger earnings potential. LiveMint Markets reported that the Nifty Midcap 100 has risen 3.89% year to date, the Nifty Smallcap 100 is up 9.48%, while the Nifty 50 has declined 7.59%.
The article attributes the relative performance to improving business momentum and resilient expectations for earnings in the mid- and small-cap segments. For Q1FY27, analysts expect mid-cap and small-cap companies to deliver stronger earnings growth than their large-cap peers, supported by healthier operating leverage, business expansion, and long-term growth prospects, according to LiveMint Markets.
SBI Securities analyst Sunny Agrawal said earnings growth in mid-caps and small-caps is likely to outpace large caps and argued that businesses with sustainable growth and reasonable valuations are positioned to outperform using a bottom-up selection approach. LiveMint Markets also cited ITI Growth Opportunities Fund’s Mohit Gulati, who said investors prefer mid- and small-cap stocks for longer-term growth opportunities and a more attractive risk-reward profile than large caps.
On the technical side, LiveMint Markets reported that SBI Securities’ Sudeep Shah linked the Nifty Midcap 100’s relative outperformance to a move above a key resistance level in the Nifty Midcap versus Nifty ratio chart in early April, while noting that both indices have largely traded in tandem since late May.