5 reasons why the fall in mid, smallcaps in 2024 is not similar to 2018

The market correction in 2018, analysts believe, was led by several risk events coming together in the same year, which triggered the market bear phase

Midcap and Smallcap stocks have taken it on their chin in the past few weeks as both the indices on the NSE slipped 3.3 per cent and 6.5 per cent, respectively. The cuts in individual stocks that comprise these indexes have been much sharper. In comparison, the Nifty50 index has been flat, albeit amid volatility.

So, is the fall in the midcap and smallcap indices the start of a deeper correction as seen in 2018? Analysts at HSBC do not think so.

The market correction in 2018, they believe, was led by several risk events coming together in the same