In just 25 sessions of FY27, the smallcap sector in India has experienced remarkable growth, with ten stocks more than doubling their value. CIAN Agro Industries tops the list with a 177% increase, followed closely by Indo Tech Transformers at 156% and Sigma Advanced Systems at 121%. This performance starkly contrasts with the Nifty50 index, which has gained only 8% during the same period. The surge in smallcap stocks is attributed to robust earnings growth, with smallcaps showing a 30% year-on-year increase, aligning closely with estimates. Key sectors driving this growth include lending non-banking financial companies (NBFCs), private banks, automobiles, healthcare, and retail, which collectively contributed 129% of the incremental earnings accretion in the smallcap space. Market analysts note that while the Nifty is influenced by large-cap stocks in banking and IT, the broader market is bullish, rewarding companies that demonstrate strong earnings and growth potential. Investors are encouraged to focus on selective opportunities in small and midcaps, particularly those linked to government-backed infrastructure spending.