Midcaps, smallcaps plunge to new lows in biggest monthly drop since 2008

The velocity of the market correction in September was so fierce that nine stocks declined for every one that advanced

The BSE Smallcap and Midcap indices have plunged 16 per cent and 13 per cent, respectively, in September — their biggest monthly fall since October 2008. 

The broader markets have marked with mayhem the 10th anniversary of the collapse of Lehman Brothers in the very month it happened. Unlike in 2008, when the Sensex too had crashed 24 per cent, the headline indices fell 6.3 per cent this month, their worst monthly performance in 31 months. 

The genesis of the fall this month has been sell-offs in the emerging market, fall in the rupee, rising bond yields, and waning risk