BSE Smallcap Index Set for Worst Monthly Performance in 2 Years

The BSE Smallcap Index is poised to mark its worst monthly performance in two years, with a sharp downturn affecting at least 191 stocks in the Nifty Smallcap 250 index, causing concern among retail investors.

In the past month, 191 stocks in the Nifty Smallcap 250 index have plunged by over 5 percent, while only 14 stocks have managed to gain by more than 5 percent. The BSE Smallcap Index has plummeted by over 7 percent in March, potentially leading to its worst monthly performance since February 2022 when it declined by more than 9 percent.

Comparison with BSE Sensex

Comparing the monthly performance of the BSE Smallcap Index with the BSE Sensex reveals a stark underperformance of the former. In March alone, the Smallcap Index has lagged behind the Sensex by more than 8 percent. This marks only the fourth instance since 2015 where the Smallcap Index has underperformed the key benchmark index by such a significant margin in a single month.

Historical Performance

Historical data shows that the BSE Smallcap Index has only experienced seven instances of a decline exceeding 7 percent in any calendar month since 2015. Additionally, there have been only four instances where the index has slipped by more than 10 percent in a given month, occurring in July 2019, February 2016, September 2018, and March 2020, with March 2020 being the worst performer with a staggering 30 percent decline.

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