The downturn followed a broader sell‑off that rippled through the small‑cap space, pushing the Nifty Smallcap index 7.5% lower on Friday and setting it on track for its worst week in 20 months. According to the BSE weekly bulletin, 15 small‑cap names breached their 52‑week lows, highlighting the breadth of the decline.
Himadri Speciality Chemical saw a 25% drop this week, its steepest since January 2009, closing at ₹497, down 5% from the previous day. Urban Company’s shares fell 17.73% this week, the most severe since listing, trading 7% lower at ₹129.96 on Friday.
CreditAccess Grameen slid 17.15% this week, heading toward its worst performance since March 2020, and Deepak Fertilisers and Petrochemicals Corp. fell 15.94%, the steepest decline since February 2025. Aarti Industries and TD Power Systems also saw losses of 15.11% and 15.08% respectively, both the worst weeks in recent memory.
The index’s 9.4% fall in February 2025 remains the previous benchmark for a single‑week drop, underscoring the severity of this week’s slide. Sector‑average data from the NSE shows the broader small‑cap sector down 4.3% over the same period, indicating that the index is outpacing the general trend.
Market watchers are now eyeing the upcoming earnings releases from the top‑losing stocks. If these companies fail to meet analyst expectations, the index could see further erosion. Conversely, if a few names report stronger-than‑expected results, the small‑cap rally might resume, easing the current pressure.