Nightmare for investors as 450 Smallcap Stocks down by upto 41%

The stock market has been turbulent lately. Over 450 small-cap stocks have dropped significantly, losing between 10-41%. This drop also caused a sharp 22% decline in the broader index from its record high. Various factors, like US tariffs, rupee depreciation, mixed corporate earnings, and foreign investor outflows, are adding to the pressure.

The BSE Smallcap index has suffered the most, dropping 22% from its peak. Other indices, like the BSE Large-cap and Mid-cap, have also seen declines of 3.3% and 7.7% respectively. The Nifty50 index fell by 2.67%, closing at 22,929.25, while the BSE Sensex lost 1,920.98 points, ending at 75,939.21.

Sectoral indices haven’t been spared. The Nifty Realty, Media, Energy, Auto, Pharma, and PSU Bank indices all ended in the red. Analysts remain cautious, predicting further declines if current support levels break.

Some stocks have managed to show gains, offering a glimmer of hope to investors. However, the overall sentiment remains bearish. Market experts advise caution moving forward.