New Delhi, May 29 -- Small-cap stocks have continued to outperform large-cap peers despite weak broader market conditions amid persistent global geopolitical tensions stemming from the US-Iran conflict, elevated crude oil prices, concerns over sticky inflation and higher interest rates, and sustained foreign institutional investor (FII) outflows from the Indian equity market.

The Nifty Smallcap 100 index has surged nearly 9% over the past three months, significantly outperforming the benchmark Nifty 50 index, which has declined more than 5% during the same period. Over a six-month horizon, the small-cap index has gained over 3%, while delivering a return of 2.9% over one year. In comparison, the Nifty 50 has fallen 8.8% in six months and...