Indian small-cap stocks recover losses since the US-Iran war, outpacing large-cap stocks

Golden Ten Data reported on April 15 that Indian small-cap stocks have shown remarkable performance, successfully erasing losses caused by the Israel-Iran conflict, while large-cap stocks have yet to achieve the same. On Wednesday, the Indian NIFTY Smallcap 250 Index rose by over 2%, recouping more than 10% of the drop since the outbreak of the conflict. Meanwhile, the Indian NIFTY 50 Index still lags behind in recovering losses, remaining about 4% below its previous level. Small-cap stocks are typically seen as a barometer of market sentiment. After underperforming large-cap stocks for over a year, they have once again attracted attention. In March, inflows into Indian small-cap mutual funds increased by 61% compared to the previous month, reaching 63 billion Indian rupees, as retail investors gobbled up shares that had fallen due to the conflict.