Small-cap index tanks 30% in a year. Time to buy selectively, say analysts

Absence of fiscal stimulus by the government amid a weak economy, surcharge-related issue with foreign portfolio investors (FPIs) amid other global developments has dented the overall market sentiment since the presentation of Union Budget on July 5. 

The S&P BSE Sensex and the Nifty 50 have slipped around 5 per cent and 6 per cent, respectively, since then. The pain in the mid-and small-cap segments has been more pronounced with both the indices slipping nearly 8 per cent and 11 per cent, respectively, during this period.

Casting the net wider reveals a worrisome picture with the small-cap indices on the