New Delhi, Jan. 23 -- The equity market rout visible in the month of January has been far more prominent in the small-cap space compared with the Indian headline indices. The BSE Smallcap index has underperformed the benchmark indices, with a 9% decline on a month-to-date basis. This is more than double the 4% loss that Sensex has recorded so far in January.

This is particularly hard for retail investors who are generally among the biggest shareholders in the small-cap segment. Amid the bloodbath in the small-cap space, investors have cumulatively lost nearly Rs.5.6 lakh crore.

Meanwhile, among 1300-odd companies part of the BSE Smallcap index, around 500 have lost 10% or more in January alone, and nearly 1050 are trading in the red, si...