Mid And Smallcap Indices Recover Fully To Pre-War Levels

Midcap and smallcap indexes recovered from their loss of 11%-12% made following the conflict in West Asia on February 28 and have gained up to 17%.

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As of April 17, the Nifty Midcap 100 rose 1.12%, and the Nifty Smallcap 100 gained nearly 1.5% during the session, reflecting continued strength in broader markets.

Sharp Recovery After Initial Decline

Broader indices had declined 11–12% following the escalation in geopolitical tensions after strikes involving the U.S. and Israel on Iran on February 28. The fall was driven by risk aversion and concerns over global supply disruptions.

Since then, both segments have recorded a strong rebound. Midcap indices have risen 13–15% from their lows, while smallcap indices have gained 16–17% over the same period, bringing them back to pre-conflict levels.

Gains Concentrated In April

A significant portion of the recovery has taken place in April. The Nifty Smallcap 100 and Nifty Midcap 100 have spearheaded the recovery within broad market indexes.

This recovery is due to the increased participation of mid- and small-sized companies following their earlier sell-off amid the period of uncertainty.

Stock-Specific Movers Drive Recovery

The recovery of the Nifty Smallcap 100 index was aided by select stocks performing well. Angel One rose about 10%, while Ircon International and Triveni Turbine advanced 9% and 8.9%, respectively, during the session.

Angel One reported a consolidated net profit of ₹320 crore for the March quarter, up 83.5% year-on-year, while revenue increased 38.2% to ₹1,459 crore, according to company filings.

In the Nifty Midcap 100 index, gains were led by Adani Total Gas, Colgate-Palmolive and Radico Khaitan, which rose 6.3%, 6.2% and 5.3%, respectively.

Broader Markets Show Resilience

The rise in midcap and small cap index suggests that there is renewed interest in purchasing in other indices as well after the correction in prices that came after certain geopolitical changes.

These indices are known to be volatile in times of uncertainty; however, they have now recovered to their previous price levels following some gains made recently.

The activity in broader indices on April 17 indicates that the midcap and small-cap indices have recovered from the fall they experienced after the conflict on February 28.