Nifty Smallcap 100 Index Plummets Over 4%: 80 Stocks in Bear Grip

The Nifty Smallcap 100 index witnessed a steep decline of over 4% on January 13, 2025, marking its worst single-day fall since August 2024. This drop extended the index’s losing streak to 4th consecutive sessions, during which it lost a total of 9.71%. After a stellar performance in 2023 and 2024, the start of 2025 has been challenging for the small-cap segment. Let us delve into the details and understand the current dynamics of the Nifty Smallcap 100 index.

Performance Overview: A Tough Start to 2025

In 2023 and 2024, the Nifty Smallcap 100 index posted remarkable gains of 55.62% and 23.94%, respectively. However, 2025 has started on a bearish note, with the index tumbling nearly 10% year-to-date (as of January 13, 2025). The market breadth on January 13 strongly favoured the bears, with 96 stocks ending the session in the red.

PE Ratio Analysis: Evaluating Valuations

As of January 10, 2025, the Nifty Smallcap 100 index’s price-to-earnings (PE) ratio stood at 32.6, reflecting a significant drop compared to its 1-month and 3-month averages of 34.92 and 34.80, respectively.

• Comparison with Averages:
  • Below the 6-month average PE of 32.67.
  • Above the 1-year average PE of 30.45.
  • Above the 2-year average PE of 25.78.
  • Above the 5-year average PE of 28.09.

Bear Grip: 80 Stocks Facing Steep Declines

The bearish sentiment has taken a toll on 80 stocks within the Nifty Smallcap 100 index, which are currently trading in bear territory. These stocks have seen declines ranging from 20% to 55% from their respective 1-year highs. A stock is considered in a bear grip when its value drops 20% or more, highlighting the widespread bearish pressure across 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. 

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