New Delhi, Dec. 18 -- Small-cap stocks have been under pressure in 2025, making it one of their toughest phases in recent years, but market experts now believe this weakness may actually be setting up a favourable entry point.

After a strong two-year rally, the segment has sharply underperformed in 2025, and valuations have cooled significantly. For long-term investors, this could be the right moment to start looking at quality names in the small-cap basket.

The Nifty Smallcap 100 index has fallen more than 9% year-to-date, turning sentiment negative among retail investors, who hold a large share of ownership in these companies. This decline comes after two blockbuster years - the index gained 24% in 2024, after a massive 56% jump in 20...