S Naren warning comes true? Smallcaps now officially in bear market territory

The Nifty Smallcap 250 index has plunged 21% from its September 2024 peak of 18,688.30, entering bear territory. A security is considered in a bear zone after a 20% drop from its 52-week high. At an event last weekend, ICICI Prudential MF CIO S Naren stirred markets by cautioning against SIPs in small and midcap funds due to high valuations.