Smallcap survivors: These sectors weathered the market correction
Subscribe to enjoy similar stories. The carnage in smallcap stocks during the recent market correction has been widely noted. The BSE SmallCap index’s 24% plunge into bear territoryfrom its 52-week high, with approximately a third of small caps declining 50% or more from their most recent highs, is a stark reminder of the risks in this segment.
Interestingly, there is a lesser-known story regarding the relative resilience of certain sectors within this battered space. A staggering 30% of BSE-listed firms are down 50% or more from their 52-week high, while around a third of small caps are down by half or more, showed a Mint analysis of nearly 3,900 companies. Alarmingly, this collapse is widespread, with over a third of smallcaps in eight out of 19 sectors,tracked by Mint, suffering similar losses.
This market-wide correction signals a dramatic shift in investor behaviour, as they aggressively rush to divest riskier assets amid escalating macroeconomic anxieties and global uncertainties. Travel and hospitality, and chemicals sectors have shown relative strength, presenting opportunities for savvy investors. Amid this turmoil, these sectors have shown resilience, with only 15% travel and hospitality stocks in the smallcap segment and 19% chemical stocks down by half or more from their 52-week highs.
Also read: Equity rush, capex halt, bond’s lure: What strategy will companies opt for amid market corrections? Does their relative resilience position them as appealing options for investors seeking stability amid broader market volatility? “The overall demand for the chemicals industry has been under pressure in the last two years. The ongoing tariff war may have a bearing on demand and prices. In our view, one needs to adopt
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