Small, midcap indices down up to 2%, snap six day-rally as gains fizzles amid tariff overhang
The benchmark index Nifty, which was also off highs as investors evaluated the rally's endurance and the news flow around tariffs, outperformed the broader market indices.
On March 25, shares of small and midcap companies fell precipitously, sending the broader market indices into the red and ending their six-day winning streak. Investors were waiting for more definitive indications of foreign buying interest while also being concerned about the sustainability of the rebound and the impending reciprocal tariffs by US President Trump.
Despite lagging the benchmark index Nifty 50, the broader market indices fell drastically by about 200 points from the day's high, with the Nifty Smallcap index down nearly 2 percent and the Nifty Midcap index down over a percent in mid-day trading.
Ajit Mishra of Religious Broking advised investors to remain cautious and closely monitor key technical levels and global cues despite the market's generally positive sentiment. "Last week's rebound was driven by bargain hunting, and fuelled by expectations of a turnaround in FPI pushing the Sensex, Nifty, Nifty midcap 100, and Nifty smallcap 100 to their strongest weekly gains in years," Bajaj Broking said, adding that charts show that markets could form a double bottom formation, wherein they test a low, recover, and then revisit the low before stabilizing.
On the midcap index, Dixon Technologies was the top loser, down over 5 percent to snap its 5-day gaining streak. Mangalore Refinery and Petrochemicals (down almost 5%), Policybazaar-parent PB Fintech (down over 4%), Kalyan Jewellers (down nearly 4%), Bharat Dynamics (down nearly 4%), Vodafone Idea (down over 3%), HUDCO (down nearly 3%), Delhivery (down over 2%), Mazgaon Dock Shipbuilders (down over 1%), and other noteworthy midcap names also saw losses.
On the smallcap index, Swan Energy shares were the top loser, falling nearly 6 percent. Other notable smallcap stocks that recorded losses included Ola Electric (down nearly 5 percent), Central Bank (down nearly 5 percent), Castrol India (down over 4 percent), BEML (down nearly 4 percent), MCX (down nearly 4 percent), CAMS (down nearly 4 percent), Kaynes Tech (down nearly 3 percent) and others. Notably, the sharp downturn in the broader markets comes after a strong surge a week ago, when the mid and smallcap indices gained more than 10 percent and 13 percent from their respective March 3 lows.
Disclaimer: Moneycontrol.com's investment experts' opinions and advice are their own and do not represent the website's or its administrators'. Before making any investment decisions, users are advised by Moneycontrol.com to consult with qualified professionals.
On March 25, shares of small and midcap companies fell precipitously, sending the broader market indices into the red and ending their six-day winning streak. Investors were waiting for more definitive indications of foreign buying interest while also being concerned about the sustainability of the rebound and the impending reciprocal tariffs by US President Trump.
Despite lagging the benchmark index Nifty 50, the broader market indices fell drastically by about 200 points from the day's high, with the Nifty Smallcap index down nearly 2 percent and the Nifty Midcap index down over a percent in mid-day trading.
Ajit Mishra of Religious Broking advised investors to remain cautious and closely monitor key technical levels and global cues despite the market's generally positive sentiment. "Last week's rebound was driven by bargain hunting, and fuelled by expectations of a turnaround in FPI pushing the Sensex, Nifty, Nifty midcap 100, and Nifty smallcap 100 to their strongest weekly gains in years," Bajaj Broking said, adding that charts show that markets could form a double bottom formation, wherein they test a low, recover, and then revisit the low before stabilizing.
On the midcap index, Dixon Technologies was the top loser, down over 5 percent to snap its 5-day gaining streak. Mangalore Refinery and Petrochemicals (down almost 5%), Policybazaar-parent PB Fintech (down over 4%), Kalyan Jewellers (down nearly 4%), Bharat Dynamics (down nearly 4%), Vodafone Idea (down over 3%), HUDCO (down nearly 3%), Delhivery (down over 2%), Mazgaon Dock Shipbuilders (down over 1%), and other noteworthy midcap names also saw losses.
On the smallcap index, Swan Energy shares were the top loser, falling nearly 6 percent. Other notable smallcap stocks that recorded losses included Ola Electric (down nearly 5 percent), Central Bank (down nearly 5 percent), Castrol India (down over 4 percent), BEML (down nearly 4 percent), MCX (down nearly 4 percent), CAMS (down nearly 4 percent), Kaynes Tech (down nearly 3 percent) and others. Notably, the sharp downturn in the broader markets comes after a strong surge a week ago, when the mid and smallcap indices gained more than 10 percent and 13 percent from their respective March 3 lows.
Disclaimer: Moneycontrol.com's investment experts' opinions and advice are their own and do not represent the website's or its administrators'. Before making any investment decisions, users are advised by Moneycontrol.com to consult with qualified professionals.
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