It is official! Small & Midcaps are in a bear market; more than 600 stocks take a hit
Updated : August 09, 2019 11:58 AM IST
According to the data collated on August 7, the S&P BSE Smallcap index has fallen about 39 percent from its 52-week high, while the S&P BSE Midcap index is down a little over 20 percent from its peak.
A bear market is a condition in which securities/stock prices fall 20 percent from their recent peak amid widespread pessimism or fear in the market. A situation analysts say we are already deeply entrenched in.
Smallcap & midcap stocks continued to be under pressure even when benchmark indices were hitting record highs two months ago. It was about time, benchmark indices would catch up to the broader market, largely weighed down by expensive valuations, budget proposals, selling by foreign investors, muted results, and trade war concerns.