Small and mid cap segments as well as certain theme-based stocks were seen to outperform the benchmark indices like National Stock Exchange’s 50-stock Nifty and Bombay Stock Exchange’s 30-stock Sensex, according to a research report from Systematix Group, a financial services platform with presence across India’s capital markets.

The Nifty mid cap 100 stocks showed a compound annual growth rate (CAGR) of 16.7% and had risen 6.2% in the past year. The Nifty small cap 250 stocks reported a five year CAGR of 18.8% and 9.1% in the past year. Nifty India Manufacturing Index saw 15.1% CAGR in the past five years and 9.5% in the past year. S&P BSE Capital Goods recorded 24.2% five-year CAGR and 14.1% in the past year.

In comparison, Nifty, which is the benchmark for the Indian stock market, showed a mere 8.4% five-year CAGR but declined 5.2% in the past year. Sensex grew at a slower 7.6% five-year CAGR and tanked 7.1% in the past year.

Core sectoral indices which are benchmark for sectoral stock performance had a mixed performance with some indices auto, pharma and metal having a consistent double-digit CAGR in the last five years, while some declining more than 10% in the past one year.

Analysts at Systematix cited lower earnings runway, risk of compressing stock valuations and the uncertain geo-political risk weighing on crude oil prices as the reason behind the performance.

“Markets may stabilize, but a durable bull cycle requires stronger earnings recovery and consumption revival,” they said in the report.

Published - August 05, 2026 08:38 pm IST