In 2025-26, however, of the 4,386 stocks listed on the BSE, only 1,423, or about 32%, have shown gains. This is the first time since 2020-21 that this number has dropped below 50%. Typically, in a rising market, froth builds in smaller companies. In recent months, the top end of the market has rebounded—the Sensex is only 1% below its September 2024 high. However, the BSE MidCap and BSE SmallCap indices, which capture the second and third levels of business valuations, are still 6% and 11% below, respectively.
From AI to FPIs, five questions facing Indian stocks in 2026
