Nifty Smallcap 100 Index Witnesses Sharpest Fall Since February 28: Declines 1.89%

The Nifty Smallcap 100 Index is a benchmark that tracks the performance of 100 small-cap stocks listed on the National Stock Exchange (NSE). It reflects the behaviour of the small-cap segment, making it an important reference for investors evaluating smaller companies in the financial market.

The index is computed using the free-float market capitalisation method, meaning its level represents the total market value of all stocks in the index relative to a specific base market capitalisation. The Nifty Smallcap 100 is widely used for benchmarking fund portfolios, as well as for launching index funds, exchange-traded funds (ETFs), and structured products.

Sharpest Fall Since February 28: Market Performance on March 10, 2025

As of 2:38 PM on March 10, 2025, the Nifty Smallcap 100 Index is down 1.89%, marking its sharpest fall since February 28. The index initially surpassed the 15,600 level in early trade, but profit booking led to a reversal, pushing it into negative territory. Selling pressure intensified in the afternoon session, dragging the index further down.

Advance-Decline Ratio Highlights Broad Market Weakness

The market breadth reflects significant weakness in the small-cap segment, as indicated by the advance-decline ratio:

• 87 stocks within the index are declining
• 13 stocks are trading higher
• 6 stocks have registered a decline of over 5%

The widespread decline suggests broad-based selling pressure within the small-cap segment.

Year-to-Date and Monthly Performance

Despite a positive start to March, the index continues to face headwinds:

• Year-to-date (YTD) decline: 19% (as of March 10, 2025)
• March 2025 returns so far: +3.57%

The Nifty Smallcap 100 Index has significantly underperformed the Nifty50, reflecting ongoing challenges for the small-cap sector.

Final Thoughts

The Nifty Smallcap 100 Index serves as a crucial indicator of the small-cap market’s performance. While it showed some resilience earlier in March, the sharp fall on March 10—its steepest decline since 28 February—indicates continued volatility in the small-cap space. 

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.