Amidst Nifty 50’s record breaching feat, mid-cap and small-cap indices have witnessed worst sell-off since December 23, 2022 on Tuesday.
Both indices shed Rs.5 trillion worth of market-cap in contrast to Rs.60,000 Cr loss of Nifty 50 stocks.
The Nifty Smallcap 100 index dropped 532 points, or 4.1%, to close at 12,450, while the Nifty Midcap 100 index lost 1,274 points, or 3.1%, to reach 40,170.3.
Today’s data depicts the fate of investing in broader markets where both the risk and reward are high and volatile.
PSU shares have seen big chunk of drop. This could be due to profit booking. Lately, these stocks have been in the vogue.
Most of the small-cap stocks have rallied since March. Hence, a decent correction is considered to be healthy.