Nifty Smallcap 50 Maximum Drawdown — Worst Crashes in History (Dec 2005–Aug 2025)
Data as of 2025-08-31 · Window: Dec 2005 – Aug 2025 · Source: NSE index month-end closing values
Answer
On a month-end basis, the deepest drawdown of the Nifty Smallcap 50 index between Dec 2005 and Aug 2025 was -76.4%, from a peak in Dec 2007 to a trough in Feb 2009 (14 months peak-to-trough). Recovery to the prior peak took 92 months from the trough. Intra-month daily drawdowns were deeper than these month-end figures. Past performance does not predict future results.
Five deepest drawdowns of the Nifty Smallcap 50 (month-end basis)
| Peak | Trough | Depth | Peak→Trough | Recovery (from trough) |
|---|---|---|---|---|
| Dec 2007 | Feb 2009 | -76.4% | 14 months | 92 months |
| Dec 2017 | Mar 2020 | -62.2% | 27 months | 14 months |
| Apr 2006 | Jul 2006 | -28.0% | 3 months | 6 months |
| Sep 2021 | Jun 2022 | -27.5% | 9 months | 13 months |
| Sep 2024 | Feb 2025 | -20.3% | 5 months | Not recovered by Aug 2025 |
Source & methodology
- Source: NSE index month-end closing values. Data window: Dec 2005 – Aug 2025. As of: 2025-08-31.
- Source: NSE index month-end closing values (price return — closing values exclude dividends; total-return variants of these indices compounded higher).
- CAGR computed between month-end closes: (end / start)^(1/years) − 1.
- Calendar-year returns computed December-close to December-close.
- Drawdowns computed on month-end closes (month-end basis). Intra-month daily drawdowns were deeper than month-end figures.
- All statements are historical observations, not forecasts or recommendations.
Frequently asked questions
What was the maximum drawdown of the Nifty Smallcap 50?
The deepest month-end drawdown in this dataset (Dec 2005–Aug 2025) was -76.4%, peaking in Dec 2007 and bottoming in Feb 2009. Daily-data drawdowns were deeper. Past performance does not predict future results.
How long did the Nifty Smallcap 50 take to recover from its worst crash?
From the Feb 2009 trough, the Nifty Smallcap 50 took 92 months to regain its Dec 2007 peak, measured on month-end closes (price return, dividends excluded).
Why do these drawdowns differ from daily-data figures?
These figures use month-end closes only. A drawdown measured on daily closes captures intra-month lows and is therefore deeper — e.g., indices fell further intra-month in March 2020 and October 2008 than month-end values show.
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BacktestIndia is an educational research platform, not a SEBI-registered investment adviser or research analyst. Everything on this page is a historical computation from recorded market data, presented for education. It is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not predict future results. Backtested results have inherent limitations and do not represent actual trading. Consult a SEBI-registered investment adviser before making investment decisions.