BSE Smallcap Index Reaches Six-Month Low
The BSE Smallcap index, which monitors the performance of smaller listed firms in India, has dropped to a six-month low, indicating that smallcap stocks are currently under pressure but could present prospects for future development if the market recovers.
MARKET NEWS
12/8/20251 min read
On Friday, December 5, 2025, the BSE Smallcap index fell to its lowest point in more than six months, reaching an intraday low of 51,028—its lowest since May 22. Smallcap underperformance in a solid overall market was highlighted by this 0.66% fall at 11:55 AM, which contrasted with a 0.36% increase in the BSE Sensex.
Year-To-Date Struggles and Sharp Correction
The BSE Smallcap index has dropped 8% so far in 2025, trailing the BSE Sensex's 9% increase and the BSE Midcap index's 0.34% decline. The index is still well above its 52-week low of 41,013.68 from April 7, although it has corrected 12% from its 52-week high of 57,827.69 reached on December 12, 2024.
Notable Decliners and Sectoral Pain
Several small-cap stocks tumbled 5-7% intra-day, including Astec Lifesciences [finance: Astec Lifesciences Limited], Vijaya Diagnostic Centre [finance: Vijaya Diagnostic Centre Limited], Hindustan Construction Company (HCC) [finance: Hindustan Construction Company Limited], TCC Concept, Le Travenues Technology (IXIGO) [finance: IXIGO Limited], and NIIT Learning Systems [finance: NIIT Learning Systems Limited]. The Nifty Smallcap100 index mirrored this, slipping 7% in CY25 versus a 10.6% gain in the Nifty 50, with a 5% drop over the past month against Nifty's 2% rise.
Outlook: Signs of Potential Rebound
InCred Equities analysts predict a 20–25% increase in the Nifty Smallcap100 by December 2026, suggesting that the smallcap downturn may be coming to an end. Despite recent challenges, they see a retest of a 15-year rising trendline breakout from 2023, with RSI displaying bullish divergence following a pullback in March, indicating long-term investment prospects.