Top 10 smallcap stocks tumble up to 20% in 2026. Is your portfolio at risk?
1/11
Smallcap Slump
After a bruising 2025, when the Nifty Smallcap 100 index fell nearly 6%, 2026 is shaping up to be another difficult year, at least judging by January’s early trend. The index is already down about 2%, with several stocks sliding as much as 20% in just the first few trading sessions. Here are 10 stocks that have led the sell-off in the index at the start of the new year.
2/11
Godfrey Phillips India
The cigarette maker has emerged as the worst performer in the space, plunging 20%, amid heightened regulatory and policy scrutiny. Cigarette taxes are expected to rise by 38% to 50%, depending on cigarette length, with longer king-sized variants facing a steeper increase. This translates into a weighted-average tax hike of around 40% to 42%.
3/11
Schneider Electric Infrastructure
The stock has dropped 14% so far in 2026, after slipping 6% in 2025. The company operates in the energy technology space, offering solutions across electrification, automation and digitalisation for homes, buildings, data centres, infrastructure and industries, with a focus on energy management.
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4/11
Ashoka Buildcon
Shares of the infrastructure major are down 12.5% in 2026. The company is a leading player in India’s infrastructure sector, with a strong presence in highway development through EPC (Engineering, Procurement and Construction) and BOT (Build-Operate-Transfer) models.
5/11
Rallis India
The Tata Group company has seen its stock fall 11.5% in 2026. Rallis is a leading Indian agrochemicals firm, supplying farmers with crop protection products such as pesticides and fungicides, along with crop nutrition solutions including speciality nutrients and bio-stimulants.
6/11
Housing Development and Infrastructure
The stock has declined 11% so far in 2026 and is down about 26% over the past six months. The company is engaged in developing residential properties and commercial complexes.
7/11
Indo Count Industries
Shares of the home textiles exporter have slipped 10.22% in 2026. The decline has been driven largely by trade tariff concerns after US President Donald Trump warned of 500% tariffs on countries purchasing Russian oil, including India. Indo Count is a leading manufacturer and exporter of bedding products such as bed sheets, quilts and decorative pillows.
8/11
Adani Energy Solutions
The Gautam Adani Group company is down 10% so far in 2026. Despite the stock decline, collection efficiency remained strong at 101.75% year-on-year, while system availability stood at 99.69%. The transmission business has an under-construction order book of Rs 77,787 crore.
9/11
Swan Corp
The stock has fallen 10.1% in 2026. Swan Corp is a diversified conglomerate with operations spanning shipbuilding and heavy fabrication, textiles, real estate, oil and gas, and other sectors.
10/11
Kaveri Seed Company
Shares of Kaveri Seed have dropped 9.96% in 2026. The company develops, produces and markets high-yield hybrid seeds for crops such as maize, cotton, rice and vegetables, leveraging research and biotechnology to improve farm productivity.
11/11
Jaiprakash Associates
The stock is down nearly 10% in 2026. Part of the Jaypee Group, the company operates across multiple segments including engineering and construction, notably river valley and hydro projects, cement, power, real estate, hospitality, fertilisers and sports.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)