The earlier divergences were different as they got formed in a much shorter span of time. This time it has taken 9 months. The large caps have held well while mid-small caps bled.. there could certainly be a decline on all indices from here but i am not sure if it will last 12 months without any major macro issues.
@jangra.keshav, May be you are right sir. Still i think market should correct to match valuations.. Also for the past few years,USDINR is negatively correlated with markets,so i feel if Rupee depreciates,it will trigger more selling pressure..