Forget Nifty50, smallcap index soars up to 200% in 2026. Will the mammoth rally continue?

The Nifty Smallcap 250 has gained 10% in 2026 while the Nifty 50 has fallen 6%, with the rally underpinned by 19% year-on-year earnings growth across a 168-company smallcap coverage universe, of which 68% met or beat estimates. Top gainers include HFCL up 212%, Aditya Infotech up about 140%, Acutaas Chemicals up around 109%, and Syrma SGS Technology up about 94%. Experts remain divided, with some citing reasonable valuations, resilient SIP inflows and bottom-up stock picking to support further upside, while others such as Prashant Jain and Kunal Vora warn smallcaps have turned expensive and largecaps now offer better value as foreign selling potentially eases.