Shares of smallcap companies were under pressure and tumbled up to 14 per cent on the BSE in Tuesday’s intra-day trades owing to profit booking. The S&P BSE Smallcap index was down 4 per cent at lowest point of the day, thus recording its sharpest intra-day fall in the current calendar year 2023 (CY23). Earlier, on December 23, 2022, the S&P BSE Smallcap index had fell 4.25 per cent in intra-day trades.
STC India, Texmaco Rail & Engineering, Jindal Saw, Bombay Dyeing & Manufacturing Company, IFCI, Vindya Telelinks, Pokarna and Magadh Sugar & Energy were down over 10 per cent.
Total 22 stocks from the Smallcap index including Suzlon Energy, GMR Power and Urban Infra, Reliance Infrastructure, 63 Moons Technologies, PTC Industries, Genus Power Infrastructure, Patel Engineering, HPL Electric & Power and BF Utilities were locked at their respective lower circuits, with only sellers at these counters.
Since April, the S&P BSE Smallcap and S&P BSE Midcap index have outperformed the market and surged 43 per cent and 37 per cent, respectively, till Monday on strong domestic inflows. In comparison, the S&P BSE Sensex gained 13.8 per cent during the same period.
“The markets yesterday touched new highs crossing 20,000. This was driven by continued liquidity in the markets with improved commentary on Capex which can drive earnings visibility beyond FY24. Frontline stocks still remain attractive, we can see some correction in Mid and Small caps which have materially outperformed the frontline indices which has resulted in above average PE expansion” said Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services.