The Indian equity market has recently experienced significant volatility, leaving investors anxious about their investments. Benchmark indices like the Nifty 50 and S&P BSE Sensex have dropped by 10-11% from their record highs in September 2024.
The mid-cap and small-cap segments have been hit the hardest, facing severe selling pressure. This decline is due to global and domestic factors, including global trade tensions, inflation concerns, and fears of an economic slowdown. High valuations in these segments have also contributed to the sell-off.