India's smallcap index plunges 20% from September high
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A monthslong selloff in Indian stocks is showing few signs of abating, with a gauge of smallcap shares plunging on Tuesday to take its losses from a September peak to 20%. The NSE Nifty Smallcap 250 Index was on course to enter a bear market after losing more than 3% early in Tuesday’s session. It sank 3.7% on Monday. Indian stocks have suffered in recent months as concerns over a slowdown in economic as well as earnings growth have seen foreign funds exit the market. Small- and mid-cap stocks seem to be bearing the brunt of the latest slide as risk-off moves deepen. Overseas investors have withdrawn more than $19 billion from the market on a net basis since the end of September, with over $7 billion of outflows happening in January alone. Bloomberg “This small-cap selloff, caused due to high valuation expansion over the years, can extend the collateral damage for the broader market as well,” said Deven Choksey, managing director at DRCho...
