Nifty Small Cap 100 Index Gains 1.66% in 2025; Extends Winning Streak for 3 Sessions

The Nifty Small Cap 100 Index maintained its upward trajectory, gaining 0.64% on January 2, 2025. After recording an impressive 24% gain in 2024, the index began 2025 on a positive note, rising 1.66% in the first two trading sessions.

Market Breadth Strength

On January 2, 2025, the advance-decline ratio remained strong, with 72 stocks closing in green and 28 stocks in red. This indicates broad-based buying interest among investors.

Valuation Trends – PE Ratios in Focus

As of January 1, 2025, the PE ratio of the index stood at 35, slightly below the 1-month average of 35.42 but above the 3-month (34.89) and 6-month (32.45) averages. Long-term Perspective: The index trades above its 2-year average of 25.53 and 5-year average of 28.05, suggesting a higher valuation relative to historical levels.

Historical January Performance

Since 2012, the Nifty Small Cap 100 Index has averaged 0.98% gains in January, posting positive returns in 50% of the years.

Recent January Trends:

• Positive Years: 2020, 2021, 2024, and 2025 (so far).
• Strongest Gain: 5.83% in January 2024.
• Negative Years: 2018, 2019, 2022, and 2023.
• Biggest Loss: 4.90% in January 2019 and 11.02% in January 2016.

Conclusion

The Nifty Small Cap 100 Index has started 2025 on a strong note, supported by gains in the initial sessions and valuations above long-term averages. However, historical data indicates a mixed performance in January, with both gains and sharp corrections observed in previous years.

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.