In FY26, the benchmark Sensex delivered a respectable 9% gain, but the real fireworks came from the small-cap segment, which surged nearly 14%. This rally turned the spotlight on smaller companies, with as many as 36 small-cap stocks becoming multibaggers. Yet, beneath this broad-based cheer, there’s another side to the story. So far, in the first eight months of FY26, 18 small-cap stocks have plunged between 40% and 77%, and among them, seven have crashed more than 50%. These sharp declines make them worth a closer look—for both bargain hunters and cautious investors alike. (Data Source: ACE Equity)
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