Union Budget that was presented on 5th of July, has triggered a steep decline in the domestic India markets. Sensex has tanked by 6.2% and Nifty 50 by 6.4%. Mid and small-cap categories declined to the lowest levels in 30 months.
Some of the main reasons for the market decline are unfavourable budget, poor corporate earnings and below-average monsoon.
Mid and small-cap indices fell to their lowest level in the last 2.5 years. This could however, be an opportunity for long-term investor to accumulate mid and small caps at dirt cheap valuations. Historically broader markets outperformed after extreme corrections.