Indian Stock Market Crash: Normal or Bad Signs for Investors?

Traders and Investors have been on edge the past few weeks thanks to volatility in the stock market. Good news has failed to lift stock prices, while even minor bad news triggers huge corrections. Take Nifty50 for instance. It hit a record high of 26,277 on September 27, 2024, but failed to continue the momentum. 

Today, it closed at 23,071, which translates to a fall of more than 12%. With all-round panic for investors and traders, Valentis Advisors’ MD Jyotiraditya Jaipuria talks about the volatility and when we can expect the stock market to enjoy past glory. 

Historically, a 10% correction is normal, according to Jaipuria. He also pointed out how, in the 22 out of the last 25 years, the market has seen a minimum 10% correction. Later, he explained that the absence of such corrections for a while has led to investors feeling unusual and unsettled. 

This market volatility has impacted small and midcap stocks, whereas large cap stocks have remained stable throughout the year. Jaipuria believes that normalcy will be restored once the market finds some stability in these two segments. The expert remains optimistic that both small and midcap stocks will soon find their footing, which will lead to more confidence in investors and trades, thereby stabilizing the market. 

For now, traders and investors must be prepared for short-term volatility while keeping an eye on signs of stabilization.