The Economic Times

Risk-on trade back? Smallcap stocks rally up to 28% in 2026, but market breadth stays weak

Smallcap stocks are showing signs of a comeback after a dull 2025, driven by attractive valuations and improving earnings. The India-US trade deal has boosted sentiment, though tariff threats from Donald Trump remain a concern. Despite negative market breadth, stock-specific buying is evident, with some smallcaps already delivering double-digit returns.