Nifty Smallcap 100 Index: Current Performance and Insights into Small-Cap Stocks

The Nifty Smallcap 100 Index is a benchmark designed to mirror the behaviour and performance of the small-cap segment within the Indian financial market. Comprising 100 tradable stocks listed on the National Stock Exchange (NSE), this index serves as a significant indicator of small-cap market trends and investor sentiment.

Recent Performance of the Index

As of 1:19 PM on January 20, 2025, the Nifty Smallcap 100 Index has shown outperformance, gaining approximately 1% intraday. The index is trading near its day’s high, supported by strong market breadth.

• Market Breadth:
  • 71 stocks are trading in the green.
  • 29 stocks are in the red.
  • Notably, 5 stocks have surged over 5%, while 10 have risen between 3-5%.

Conversely, only 2 stocks have declined by more than 5%, underscoring the overall bullish sentiment.

Performance Over Time

Over the past 2-year, the Nifty Smallcap 100 Index has delivered an impressive gain of approximately 80%. However, 2025 has brought some profit-booking pressures:

• Year-to-Date (YTD) Performance
  • The index is down by 4.95% as of January 20, 2025.
  • It has, however, recovered nearly 6% from the lows of January 13, 2025.

Valuation Analysis: Price-to-Earnings (PE) Ratio

The Price-to-Earnings (PE) ratio provides valuable insights into the index’s valuation:

• Current PE Ratio (as of January 17, 2025): 32.64
• Comparative Analysis
  • Below its 1-month average of 34.01 and 3-month average of 34.47.
  • Slightly lower than its 6-month average of 32.73.
  • Above its 1, 2, and 5-year average PE values, indicating relatively higher valuations over a longer time frame.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.