Small‑cap Indian stocks show strong April returns despite weak macro narrative: Report

NEW DELHI: Indian equities delivered robust returns across market segments in April with smaller companies leading the surge, despite worsening macro indicators due to US-Iran conflict, a report said on Saturday.

The report from OmniScience Capital said Nifty Smallcap 250 index delivered impressive 13.4 per cent returns, while Nifty Microcap 250 delivered 16.2 per cent returns, the report noted.

The company said its “Bharat Vectors” framework — covering about 1,500 investible companies — showed the smallest market‑cap segments outperformed.

Select 250 stocks with average market cap about 1,500 crore and another 250 stocks with market cap around 3,000 crore returned 25.2 per cent and 23.2 per cent respectively during the month.

"Despite persistent concerns around geopolitical tensions, rising crude oil prices, inflationary pressures, currency depreciation, and continued foreign institutional investor outflows, Indian equities delivered robust returns across the market spectrum," the report said.

The rally occurred despite worsening macro indicators, reinforcing that equity markets are primarily driven by bottom-up fundamentals over time, it said.