Markets have given no reason to complain !

Today’s Daily Byte

There’s good news for the markets today—finally, the Nifty50 ends its eight-day consecutive losing streak and registers a green day. We’ve been discussing a lot of factors contributing to the overall pessimism surrounding Indian markets, such as concerns around trade progress, the strength of the US dollar, foreign investors pulling money out of the market, and the attractiveness of the S&P 500, which has recently registered an all-time high on a weekly close basis. There are many reasons for the recent market conditions, but today we won’t focus on that. We’ll focus on the correction happening in the small-cap space.

Small-cap stocks have been a hot topic, especially during a correction. A lot of chatter surrounds the small-cap index, and today we will try to analyze how bad this current fall is compared to historical corrections.

Reading Time : 4 Minutes

Markets have given no reason to complain !

Many investors are currently feeling stressed about the market, but looking at the long-term chart of Nifty and Nifty Small Cap can provide some clarity. Over the last 20 years, there have been multiple instances where small caps have seen steep declines—sometimes sudden, sometimes gradual. Right now, small caps have fallen about 20-21%, while past corrections have seen drops of over 50% and even 60-70% at times... . . . .

Reading Time : 4 Minutes

Skewed Bell Curve

A fascinating infographic from Capitalmind highlights the annual performance of the stock market index from 1980 to 2024. Looking at the data, there are only a handful of years where the market saw a decline between 0 and -20%. There were three years where the drop was between -20% and -40%, and only one year where the market crashed between -40% and -60%.. . . . .

Reading Time : 3 Minutes