India’s Nifty Smallcap 100 index plunged practically 4 per cent on January 27, 2025, deepening its month-to-month losses to over 12 per cent – marking the worst decline since March 2020’s Covid-19 market crash. The selloff noticed no gainers amongst index constituents, with shares falling as much as 5 per cent in morning commerce.
The decline marks the primary double-digit month-to-month drop since February 2022, extending the index’s shedding streak to a few consecutive weeks. Overseas investor promoting stress and deteriorating market sentiment have significantly impacted the broader market indices.
Analysts attribute the sharp correction to a number of elements, together with disappointing company earnings, decreased shopper spending, and forex weak point. Historic knowledge reveals the index has proven weak seasonal efficiency in January, delivering adverse returns in 57 per cent of circumstances over the previous 14 years.
Regardless of the present downturn, the index has demonstrated resilience traditionally. Following the March 2020 crash, it rebounded to shut that 12 months with positive aspects exceeding 21 per cent. The Nifty Smallcap index has achieved double-digit constructive returns in 4 of the final 5 years, with 2022 being the one exception.
The extended weekly decline represents the longest downturn since late October, as sustained overseas promoting continues to stress mid and small-cap shares.
- Additionally learn: Inventory Market Reside Updates 27 January 2025: Sensex plunges 824.29 factors to shut at 75,366.17; Nifty declines 263.05 factors to settle at 22,829.15
