Key Points

The Indian stock market experienced a remarkable quarter with smallcap and midcap indices showing exceptional growth. Nifty Smallcap 250 led the charge, rising 17.83% in Q1 FY26, while other market segments also demonstrated strong performance. Sectors like financial services and consumer discretionary contributed to the broad-based rally. Global markets and commodity trends further supported the positive investment landscape.

Key Points: Nifty Smallcap 250 Surges 17.83% in Q1 FY26 Market Rally

  • Nifty Smallcap 250 jumps 17.83% in Q1 FY26
  • Midcap 150 climbs 15% with strong market participation
  • IT sector rebounds with 4.36% June returns
  • Global markets show positive momentum with S&P 500 rising 4.96%
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Nifty Smallcap 250 rises 17.83 pc in Q1 FY26; Midcap 150 up 15 pc

Indian stock market witnesses robust performance across segments with smallcap and midcap indices leading quarterly gains amid sectoral strength.

"Both precious metals have delivered over 20 per cent returns so far in 2025 - Motilal Oswal AMC Report"

Mumbai, July 3

The Indian stock market saw strong performance across all segments in June, with the Nifty Smallcap 250 index leading the way with a sharp gain of 5.73 per cent, a new report said on Thursday.

The Nifty Midcap 150 followed with a 4.09 per cent rise during the month, according to the data compiled by Motilal Oswal Asset Management Company (AMC).

Not only did small and mid-cap stocks deliver robust returns in June, but their performance over the past three months has also been impressive.

The Nifty Smallcap 250 jumped 17.83 per cent in the Q1 FY26, while the Nifty Midcap 150 climbed 15 per cent during the same period.

Large-cap indices, too, joined the rally. The benchmark Nifty grew by 3.1 per cent, and the Nifty Next 50 was up 3.35 per cent in June.

The broader Nifty 500 index posted a monthly gain of 3.58 per cent, supported mainly by sectors such as financial services, consumer discretionary, and commodities.

The microcap space wasn't left behind either. The Nifty Microcap 250 recorded a 3.03 per cent increase in June -- highlighting broad-based participation across market segments -- large, mid, small, and microcaps -- all ending the month in the green.

Among sectoral indices, all categories showed positive returns except the FMCG sector. The IT sector, which has been under pressure throughout the year, performed relatively better in June, delivering a return of 4.36 per cent.

In terms of investment strategies, all factor-based indices gave positive returns, with the Momentum index emerging as the top performer.

Global markets also witnessed a strong month. The S&P 500 rose 4.96 per cent in June, with the IT sector accounting for more than 60 per cent of its total returns.

Among emerging markets, Korea led the gains, while Germany topped the charts among developed nations.

Commodities showed mixed trends. Crude oil prices surged by 7.11 per cent during the month, driven by rising geopolitical tensions between Iran and Israel.

Meanwhile, silver prices soared 8.75 per cent in June, significantly outperforming gold, which remained largely flat.

"Both precious metals have delivered over 20 per cent returns so far in 2025," the report stated.

- IANS

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Reader Comments

S
Sarah B
As an NRI investor, I'm impressed by India's market resilience. The 17.83% smallcap growth beats most developed markets. However, I wish there was more transparency in some of these smaller companies' financial reporting.
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Ananya R
Midcap stocks have been my sweet spot! Not as risky as smallcaps but still giving great returns. The 15% quarterly growth proves India's economic strength despite global uncertainties. Jai Hind! 🇮🇳
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Vikram M
While the numbers look impressive, I'm concerned about retail investors chasing these high returns without understanding the risks. SEBI should increase investor education programs, especially in tier 2/3 cities.
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Priya S
The IT sector rebound is a relief! My husband works in tech and there were so many layoff fears. 4.36% growth in June shows maybe the worst is over. Fingers crossed 🤞
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Karthik V
Silver outperforming gold by 8.75% is interesting! In Indian culture we always prefer gold, but maybe it's time to diversify our traditional investments too. What do others think?

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