New Delhi, May 21 -- While benchmark indices have remained under pressure in 2026, broader markets have significantly outperformed, with the Nifty Smallcap 100 and Nifty Midcap 100 delivering positive returns despite volatility in large caps.

The Nifty 50 is down 9.47% year-to-date (YTD) and has declined 7.49% over the last three months. In contrast, the Nifty Smallcap 100 has gained 1.52% so far in 2026 and risen 5.77% over the past three months. Similarly, the Nifty Midcap 100 is up 1.35% year to date and has advanced 3% over the same three-month period.

According to experts, the superior performance of small- and mid-cap stocks can be attributed to robust earnings growth, an optimistic business outlook, and comparatively attractive v...