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The Sensex is up 59 points at 19,074 and the Nifty is higher by 14 points at 5,776. The broader markets continue to underperform the benchmark indices.
The BSE mid-cap index has slipped 0.13% or 6,406 and the small-cap index is down 0.4% or 26 points at 6,292.
According to Nirmal Bang, "Although the large cap indices continued to rise in the month of January 2013 and have seen a correction of close to 5 % from the highs, the broader market has seen far deeper cuts. The BSE Midcap Index down 12% and the BSE Small Cap down 18% from the highs. Such deep cuts suggest exhaustion of the medium term trend of the market. While the broader indices are extremely oversold and may see a pull back in the near term we expect them to trend lower subsequently."
CORE Education & Technologies is the top loser from the mid-cap pack. CORE Education and Technologies has tanked 47% to Rs 58.80 on the back of heavy volumes on NSE despite the company clarifying that the pledged shares were not sold in the market.
The company plunged 80% in past three trading sessions on buzz that the pledged shares of the companies were likely to be sold by lenders to promoters.
Kingfisher Airlines was locked at 5% lower circuit at Rs 10.21 on BSE, with the stock extending Tuesday's 5% down fall.
Railway related stocks have extended yesterday’s losses and have plunged significantly, as no major announcements were made for big ticket projects in Rail Budget yesterday.
Stone India and Kernex Microsystems (India), Titagarh Wagons, Kalindee Rail Nirman (Engineers), Texmaco Rail Engineers and Hind Rectifiers are down between 6-20% on the Bombay Stock Exchange. ARSS Infrastructure, BEML, Gateway Distriparks and Bartronics India have slipped in the range of 2-5%.
Other notable losers from the Midcap space are ABG Shipyard, Educomp Solutions, Opto Circuits (India), Motilal Oswal Financial Services, Chambal Fertilisers & Chemicals, Jain Irrigation Systems and Religare Enterprises, all slumping between 3-12%.
On the gaining side, Suzlon Energy has rallied almost 8% to Rs 22.90, after India’s largest wind-turbine maker said that it wins 103-megawatt (MW) order from Oil & Natural Gas Corporation Limited (ONGC).
Fairfield Atlas is locked at its upper circuit of 5% at Rs 137 after its board approved the delisting offer received from parent company.
The overall breadth of the BSE mid-cap index remains weak as 139 stocks are declining while 105 are advancing.
According to Ravi Shenoy, Asst Vice President (Mid-cap Research), Motilal Oswal Securities, “Liquidity is constrained in the market. One may not expect any near-term breather on this front for mid-cap companies. Large cap stocks have corrected. Relative valuation has become aggressive, therefore, Midcap segment is under pressure and continue to underperform. We are advising investors to keep away companies which are engaged in pledged shares. We are advising investors to look at select stocks for investment purpose. Stocks that can be bought for investment proposes are Havells India, Bata India, Suprajit Engineering and FDC.”
