Nifty Smallcap 100 and Nifty Midcap 100 delivering returns of over 78% and 70%, respectively. But the tide seems to be turning as these indices enter a cooling-off phase.
Currently, the Smallcap index has corrected by 20%, while the Midcap index is down 16% from their all-time highs. Is this just a healthy breather or a sign of deeper challenges? In this article, we’ll explore past corrections, current trends, and what they could mean for the investors.
In September 2024, I highlighted how an index often returns to its mean after extended bull runs. This perspective provides valuable context as we examine whether the current decline signals a temporary pause or the onset of a bigger market correction.
The below data reveals the patterns in the correction cycles of the Nifty Smallcap 100 and Nifty Midcap 100 indices.
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