Over fifty small-cap companies saw a plunge of between 10 and 50 percent last week, while the benchmark Sensex saw its worst week in four months as it ended its four-week winning streak. Among the top losers from last week were public-sector undertakings (PSU) companies, including Tata Group’s Tata Investments, RITES, MTNL, and RailTel Corporation.
In addition to the companies mentioned above, smallcaps that saw a double-digit increase in share prices last week included DB Realty, Jubilant Industries, PTC India Financial, Skipper, India Nippon, Swan Energy, NALCO, Engineers India, KPI Green Energy, Spencers Retail, Sigachi Industries, Indo Amines, and others.
Markets this week
Weekly gains for the NSE Nifty were 470.2 points, or 2.09 percent, while the benchmark 3-share BSE Sensex fell 1,475.96 points, or 1.99 percent.
The growing worries about froth in the segments caused the small- and mid-cap stocks to have their worst week in fifteen months.
The industries that suffered the most were public sector banks, real estate, and energy, with losses ranging from 6.5% to 10%. Bank Nifty dropped more than 2.50% over the week, concluding at 46594.10.
‘’The unfavourable risk-reward balance of mid- and small-cap stocks, fuelled by prolonged premium valuations, has aggravated the downfall. Mid and small caps corrected led by selling from leverage-based retail investors. We expect bargain opportunities to persist in mid- and small-cap stocks whose valuations are supported by fundamentals,” stated Vinod Nair, Head of Research at Geojit Financial Services.
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