40 Smallcaps Double Returns, Broader Indices Shine Despite FII Selling

• 40 smallcap stocks delivered double-digit returns, with broader indices outperforming main indices by over 1% in late December 2025.
• Market gains were driven by strong December auto sales and a positive corporate earnings outlook.
• BSE Sensex rose 0.84% to 85,762.01, and Nifty50 gained 1.09% to 26,328.55.
• FIIs were net sellers in early January 2026 (Rs 13,180.09 crore), while DIIs provided strong support (Rs 17,766.57 crore).
• Experts note Nifty's lifetime highs but warn of fragile underlying tone, with gains concentrated in large-caps.

Why It Matters: Indian markets show mixed signals: smallcaps and broader indices shine, but gains are concentrated.