Much of the gains in smallcap IT stocks have been due to the broad-based rally in the smallcap segment in 2023. The S&P BSE Smallcap index, a barometer of the performance of smallcap stocks, has rallied 45% year-to-date. While the broad-based gains in the smallcap space has contributed to the rally in IT stocks of this segment, some of the stocks have been backed by strong institutional buying and robust earnings performance.
