Mid, small-cap indices tank 7% in January; analysts see more pain ahead

After gaining up to 6 per cent in past two months, mid-and small-cap stocks lost their sheen in calendar year 2019 (CY19) with both the indices falling 7 per cent each in January compared to one per cent rise in the S&P BSE Sensex. 

Earlier, in September 2018, both these indices had tanked 12.5 per cent and 16 per cent respectively, while the S&P BSE Sensex had slipped 6 per cent.

The underperformance comes amid liquidity concerns in the non-banking finance companies (NBFC) space and Essel Group default news. Despite the sharp fall, analysts say there more pain in store