Smallcap stocks roar back after brutal 9-day rout. Dead cat bounce or real rebound?
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After nine punishing sessions that wiped out months of gains for retail investors, smallcap stocks are mounting a fierce comeback. The Nifty Smallcap 250 index, still trapped in bear market territory and down 22% from its peak, surged 2% on Wednesday, with Aegis Logistics, GRSE, Netweb Tech, and Minda Corp clocking double-digit gains. But is this the start of a true revival—or just a cruel bull trap before another leg down? If the sell-off is a correction in a larger and structural bull market, then analysts suggest the worst may be over. But if this is the dawn of a deeper bear market, history suggests the pain could last much longer. "We have seen much shallower bear markets and in about 12 months, we see that most of the damage gets done. If we are there, then it is another seven months more and you could see 5% to 10% more correction on the leading indices,” warned seasoned investor Ajay Bagga. The Q3 earnings season was tougher ...