Stocks in broader markets likely to witness worst setback in seven years

BSE500 index down 5% year-to-date, and has under-performed the benchmark Sensex by around 9%

Stocks in the broader markets are set to post their worst yearly setback since 2011.

So far this year, the BSE500 index, which accounts for nearly 92 per cent of the country’s market capitalisation, is down 4.82 per cent.

The index underperformed the benchmark Sensex, which is up 4.15 per cent this year (nine percentage points).

In the past five years, the BSE500 and Sensex have largely moved in sync. Even in 2011, when the broader markets index had declined 27 per cent, it had underperformed the Sensex by only 277 basis points (bps).

The drop in the BSE500 index this year comes after