Diwali holds significance for the Indian stock market as it marks the end of one Samvat year and the beginning of another.
Indian equity markets have witnessed considerable pressure during Samvat 2082 so far. However, a comparison of the Nifty 100, Nifty Midcap 100 and Nifty Smallcap 100 indices reveals a divergence in the performance of different market segments.
Smallcap stocks have emerged as the relative outperformers, with the Nifty Smallcap 100 gaining nearly 2 per cent between the beginning of Samvat 2082 on October 21 and November 3. In comparison, the Nifty Midcap 100 declined around 1.68 per cent, while the Nifty 100 registered a sharper fall of nearly 6.72 per cent.
Largecaps vs Midcaps vs Smallcaps: Performance in Samvat 2082
The Nifty 100, which tracks largecap stocks, opened at 26,521.60 on October 21, marking the beginning of Samvat 2082. However, the index closed at 24,739.50 on November 3, translating into a decline of 1,782.10 points, or 6.72 per cent.
The Nifty Midcap 100 also traded lower during the period. The index started Samvat 2082 at 59,595.35 and ended the November 3 session at 58,596.25. This represented a decline of 999.10 points, or 1.68 per cent.
In contrast, the Nifty Smallcap 100 delivered positive returns. The index opened at 18,295.35 on October 21 and advanced to 18,652.85 by November 3. This marked a gain of 357.50 points, or approximately 1.95 per cent.
| Index | October 21 Open | November 3 Close | Change (Points) | Change (%) |
| Nifty 100 | 26,521.60 | 24,739.50 | -1,782.10 | -6.72% |
| Nifty Midcap 100 | 59,595.35 | 58,596.25 | -999.1 | -1.68% |
| Nifty Smallcap 100 | 18,295.35 | 18,652.85 | 357.5 | +1.95% |
Which market segment performed better in Samvat 2082?
The smallcap stocks have outperformed largecap and midcap stocks since the beginning of Samvat 2082.
The Nifty Smallcap 100 was the only one among the three indices to deliver positive returns during the period, gaining approximately 1.95 per cent.
Meanwhile, the Nifty Midcap 100 registered a relatively modest decline of 1.68 per cent, while the Nifty 100 emerged as the weakest performer, falling 6.72 per cent.
The difference in performance highlights the divergence across market capitalisation segments during the period. While largecaps witnessed the sharpest correction, smallcaps managed to remain in positive territory.
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Photo: ET Now Digital
Largecaps vs Midcaps vs Smallcaps: Performance in Samvat 2082 (Image: ChatGPT/ET Now)
Stock Market Outlook
Ravi Dharamshi, CIO, ValueQuest Investment, said market sentiment remains weak, but the underlying picture is far better. “Domestic investors have made money in the small and midcaps,” he said, adding that the situation is “not as bad as made out.”
According to Dharamshi, headline indices and large-caps have gone nowhere for nearly two years since September 2024, helping correct relative valuations “to an extreme.” He highlighted a “75 per cent divergence in relative performance” between India and global markets.
However, he believes “some amount of reversion to mean has started to happen” and that the Indian market is “well poised to perform in the near term as well as in the medium-term.”
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)