Sensex Crashes 1.36% and Nifty 1.47%; Midcap losses ranging 20-55%

Indian stock markets experienced a significant dip on Monday, with the BSE Sensex falling 1.36% to 76,330.01 and the NSE Nifty50 dropping 1.47% to 23,085.95.

Retail investors' favourite small-cap stocks are leading the recent market sell-off, with the Nifty Smallcap 100 index dropping another 4% to reach 16,912.90, its lowest since mid-June. The index has fallen nearly 11.4% from January's high and 13.6% from its all-time high in December.

Mint reports that 80 stocks in the Nifty Smallcap 100 are now in bear territory, with declines ranging from 20% to 55%.

Business Standard attributes the downturn to factors including profit booking by foreign investors, weak capital expenditure by the Central government, sluggish consumer demand, and concerns over US President-elect Donald Trump’s protectionist policies. Mint reports worries over modest earnings in Q3 FY25 and a slowdown in capital expenditure growth are weighing on investor sentiment.

A gradual recovery of the markets is expected, with potential support from the Union Budget 2025 and Trump's Presidency.