Indian equities fell across the board on October 22, with benchmarks closing clearly lower.

The Sensex dropped 0.62% to 73,249.39 and the Nifty 50 lost 0.54% to 22,687.65. The BSE 500 slid 0.64% to 33,935.27 and the Nifty 500 fell 0.65% to 21,696.55. Breadth was weak, and selling grew heavier as the session went on.

October shows a gap between large caps and the rest. The Sensex is up 1.06% for the month and the Nifty 50 is up 0.30%, but the Nifty Midcap 100 is down 3.82% and the Nifty Smallcap 100 is down 5.04%. For the year, the picture is poor everywhere: the Sensex is down 14.05%, the Nifty 50 is down 13.17% and the BSE 500 is down 9.37%.

Smallcaps still look best over longer periods, despite the recent slump. The BSE SmallCap index fell 2.48% on the day, yet it is the only segment still positive this year, up 5.45%, and it has gained 5.00% over six months. Large caps have taken the heaviest damage, with the BSE LargeCap index down 10.85% for the year and 10.11% over twelve months. The BSE MidCap index is down 5.38% year to date. Over the past month, smallcaps and midcaps have lost roughly 7-8%, against 2-3% for large caps.

Momentum remains weak. Losses show up in every period: 2-8% over one month, 4-8% over three months and 4-6% over six months. Smallcaps have held up on a yearly view, but their sharp recent falls suggest that strength is fading. Large caps have only seen short relief rallies inside a longer correction. Fresh money may be better held back until there are clearer signs of stabilisation, especially as mid and smallcap losses are accelerating.