Smallcap investors look away: Over 600 stocks deliver double-digit negative returns already in 2026

India's smallcap market is experiencing a deep correction, with over 600 stocks seeing double-digit losses early in 2026. This downturn follows a year of consolidation, impacting midcaps and smallcaps more severely than largecaps. Investors are now prioritizing companies with strong fundamentals and predictable earnings amidst growing concerns over profitability and cash flows.