Nifty Smallcap 100 extends gains for 11th day

Index up 12% since March 19

The Nifty Smallcap 100 index, a widely-tracked gauge for the performance of smallcap stocks, rose for an 11th straight day on Friday, a sign that investors remain optimistic despite the regulatory warning about market froth.

The index rose 0.84 per cent to 16,355 the highest close since February 7-even as the benchmark Nifty 50 index ended little changed. The Nifty Smallcap 100 has risen 12 per cent since March 19, outperforming the Nifty50 index which has gained just 3.2 per cent during the same period. Previously, the index had rallied for 11 straight days in September 2023.

On February 27, the market regulator Securities and Exchange Board of India (Sebi) flagged the risk of a potential bubble in the smaller companies. The caution triggered an over 10 per cent fall in the index, with shares of several smaller companies dropping more than 20 per cent. Even as the Street was debating whether more companies will tumble into bearmarket territory, there has been a sudden and sharp bounce, with the Nifty Smallcap 100 now just 1.3 per cent shy of its all-time closing high of 16,5660 on February 7.