Smallcap index plunges 16% from record high level; 26 stocks slip over 30%

The S&P BSE Smallcap index plunged nearly 5% to 16,945 in early morning trade on Tuesday, falling 16% from its record high level of 20,183 touched on January 15, 2018 in intra-day trade.

At 01:29 PM; the S&P BSE Smallcap index, the largest loser among sectoral indices, was down 3.2% as compared to 2.5% decline in the S&P BSE Midcap and 2.6% fall in the benchmark S&P BSE Sensex. The market is reacting to the global cues and hardening of bond yields across markets.

The midcap index hit intra-day low of 15,776, has slipped 14% from its all-time high of 18,321 touched on January 1, while Sensex touched a low of 33,483 in early morning trade, down 8% from its record high of 36,444 reported on January 29.

The broader NSE Nifty and the benchmark BSE Sensex each fell as much as 3.7% today, heading for a sixth consecutive session of falls, with both erasing their gains for the year.

The slump in Wall Street overnight comes as India’s record-setting share rally came under threat following the government’s announcement of a 10% long-term capital gains tax in equities, which starts in April. CLICK HERE TO READ FULL REPORT.

Gautam Duggad, Head of Research, Motilal Oswal Institutional Equities believe the correction is offering a good opportunity to buy from a 2-3 year perspective, with earnings recovery – 3QFY18 earnings are in-line so far – panning out.

“Our preference continues for large-caps over midcaps as Nifty valuations at 17-17.5x FY19 projected EPS, while not inexpensive is not out of whack either,” he added.

As many as 89 stocks from the smallcap index hit their respective 52-week lows today. Total 11 public sector banks from the index include Allahabad Bank, Andhra Bank, Bank of Maharashtra, Oriental Bank of Commerce, Indian Overseas Bank, Uco Bank and Dena Bank hit 52-week lows.

Total 124 stocks have fallen more than 25% from their respective all-time highs touched in January 2018. Of these 26 stocks slipped an over 30%, the list include Fineotex Chemicals, Philips Carbon Black, NACL Industries, BLS International, VIP Clothing, TPL Plastech and PC Jeweller.

	All-time high
Company	Date	Price (Rs)	LTP	% chg
Fineotex Chem	04/01/2018	106.05	61.30	-42.2
Phillips Carbon	09/01/2018	1594.90	952.45	-40.3
NACL Industries	08/01/2018	68.85	42.30	-38.6
BLS Internat.	10/01/2018	293.00	180.35	-38.4
VIP Clothing	08/01/2018	101.50	63.75	-37.2
TPL Plastech	03/01/2018	780.90	493.60	-36.8
Alankit	05/01/2018	88.65	56.65	-36.1
PC Jeweller	16/01/2018	600.65	389.65	-35.1
Zen Technologies	01/01/2018	158.10	103.00	-34.9
Nagarjuna Fert.	04/01/2018	28.60	18.95	-33.7
GPT Infraproject	16/01/2018	247.25	167.65	-32.2
Tinplate Co.	12/01/2018	324.80	221.40	-31.8
Graphite India	04/01/2018	908.00	618.95	-31.8
G M Breweries	08/01/2018	1212.00	828.00	-31.7
Jain Irrigat-DVR	05/01/2018	99.95	68.35	-31.6
Rain Industries	09/01/2018	475.50	326.10	-31.4
HBL Power System	09/01/2018	76.40	52.40	-31.4
Bharat Wire	11/01/2018	166.00	113.95	-31.4
Ambika Cotton	04/01/2018	1857.00	1275.00	-31.3
Bombay Burmah	10/01/2018	1820.00	1250.45	-31.3
India Glycols	12/01/2018	589.00	407.25	-30.9
Rajapalayam Mill	04/01/2018	1583.00	1099.60	-30.5
JMC Projects	11/01/2018	688.00	478.00	-30.5
RPG LifeScience.	11/01/2018	606.40	423.75	-30.1
Seshasayee Paper	15/01/2018	1225.00	857.05	-30.0
Somany Ceramics	05/01/2018	973.80	682.00	-30.0
LTP - Last traded price on BSE in Rs at 01:24 PM