The number
The Nifty Microcap 250 closed at 25,536.65 on 9 October 2026. That is 9.28% above a year earlier, in a year when the Nifty 50 fell 10.57% and the Nifty 500 fell 5.92%.
Microcaps are the small end of the listed market that NSE tracks with its Microcap 250 index. They trade thinly and swing hard, so the index is a useful stress test of how much risk-taking has been rewarded lately.
All index figures below are price returns from NSE's published closes. They exclude dividends, which are small for these indices (a yield of 0.64% for the microcap index). Returns of a year or more are compounded annual rates.
Returns to 9 October 2026
| Index | 1 month | 1 year | 3 years a year | 5 years a year |
|---|---|---|---|---|
| Nifty Microcap 250 | -4.27% | 9.28% | 16.91% | 19.40% |
| Nifty Smallcap 250 | -4.65% | 3.33% | 13.20% | 12.66% |
| Nifty Midcap 150 | -6.04% | -0.24% | 13.28% | 12.91% |
| Nifty 500 | -4.76% | -5.92% | 8.48% | 7.31% |
| Nifty 50 | -3.89% | -10.57% | 4.90% | 4.71% |
The pattern is clean: the smaller the companies, the better the multi-year number. The ordering held for one, three and five years. Over the past month all five fell, so none of this was a smooth ride.
Calendar years
| Year | Microcap 250 | Smallcap 250 | Midcap 150 | Nifty 50 |
|---|---|---|---|---|
| 2022 | 8.8% | -3.6% | 3.0% | 4.3% |
| 2023 | 66.4% | 48.1% | 43.7% | 20.0% |
| 2024 | 34.2% | 26.4% | 23.8% | 8.8% |
| 2025 | -9.9% | -6.0% | 5.4% | 10.5% |
| 2026 to 9 Oct | 13.3% | 5.3% | -3.0% | -13.8% |
The microcap index led in 2022, 2023, 2024 and so far in 2026. It lagged badly in 2025, falling 9.9% while the Nifty 50 rose 10.5%. A single bad year of that size is the cost of the higher average.
The index's history in our data starts in May 2021, so there is no earlier cycle to check it against. Five years is also one cycle, and a stretch that began just after the 2020 recovery. Treat the 19.4% as a description of this period, not a rate to expect.
The March 2026 low
On 30 March 2026 the Nifty Microcap 250 closed at 18,892.95. It has since gained 35.2%.
Valuations moved with it, but unevenly:
| Index | P/E, 30 Mar 2026 | P/E, 9 Oct 2026 |
|---|---|---|
| Nifty Microcap 250 | 22.85 | 26.53 |
| Nifty Smallcap 250 | 25.86 | 34.03 |
| Nifty Midcap 150 | 30.61 | 28.05 |
| Nifty 50 | 19.62 | 19.27 |
The smallcap index re-rated the most, by more than eight turns of earnings, while the Nifty 50 barely moved. The microcap index now trades below the smallcap index on P/E, which is the reverse of what its riskier reputation might suggest. P/E for indices this small is also sensitive to a few companies with unusual earnings, so the ratio is a rough guide only. For the smallcap side of this, see Nifty Smallcap 250 P/E.
Owning it through a fund
One mutual fund in our data tracks the index: Motilal Oswal Nifty Microcap 250 Index Fund, launched on 11 July 2023.
| Direct plan, Growth | Fund | Index |
|---|---|---|
| 1 year to 9 Oct 2026 | 8.44% | 9.28% |
| 3 years a year | 15.95% | 16.91% |
| 2026 to date | 12.25% | 13.27% |
The fund trailed the index by about 0.8 to 1.0 percentage points each period. Its Direct plan carries a total expense ratio of 0.72%, and the Regular plan 1.25%. Part of the gap is that cost; the rest is the difficulty of trading thinly traded shares at the closing price. Index price returns also leave out dividends, so the fund's real shortfall against a total-return index would be a little smaller.
Compare the broader choices in Nifty Smallcap 250 index funds compared, or look at how active small-cap funds did in small-cap fund returns, October 2026.
What to take from it
Microcaps have paid the most in this window, and they have also fallen the most in the bad stretches, as 2025 showed. With a record that begins in 2021 and one index fund launched in 2023, the evidence is thin. You can check any fund's own history on the screener.
Frequently asked questions
How has the Nifty Microcap 250 performed against smallcap and midcap indices?
To 9 October 2026 the Nifty Microcap 250 returned 9.28% over one year, 16.91% a year over three and 19.40% a year over five (price index, without dividends). The Nifty Smallcap 250 returned 3.33%, 13.20% and 12.66%; the Nifty Midcap 150 returned -0.24%, 13.28% and 12.91%.
Is there a mutual fund that tracks the Nifty Microcap 250?
One in our data: Motilal Oswal Nifty Microcap 250 Index Fund, launched in July 2023. Its Direct plan has a total expense ratio of 0.72% and returned 8.44% over the year to 9 October 2026, against 9.28% for the index.
Is the Nifty Microcap 250 cheaper than the smallcap index?
On 9 October 2026 its P/E was 26.53 against 34.03 for the Nifty Smallcap 250 and 28.05 for the Nifty Midcap 150. In March 2026 the microcap P/E was 22.85 and the smallcap P/E 25.86.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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