India's smallest listed stocks delivered the strongest market run in six months. The Nifty Microcap 250 index rose eleven percent, beating other size indices. Sterlite Technologies led gains with a four hundred twenty-four percent return. Fund managers expect earnings growth in smaller companies to improve soon. However, microcap stocks carry risks of sharp corrections and liquidity issues.

Benchmark indices like Sensex and Nifty 50 showed negative returns over two years. However, select midcap, smallcap, and multicap funds delivered double-digit gains. These funds…

India's smallest listed stocks delivered the strongest market run in six months. The Nifty Microcap 250 index rose eleven percent, beating other size indices. Sterlite…