Business Standard

Profit booking takes sheen away from smallcap, midcap stocks

In a reversal of rising trajectory after many months, BSE smallcap and midcap indices on Tuesday faced severe drubbing as they tumbled up to 2 per cent on profit-booking by investors

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Press Trust of India New Delhi

In a reversal of rising trajectory after many months, BSE smallcap and midcap indices on Tuesday faced severe drubbing as they tumbled up to 2 per cent on profit-booking by investors.

The 30-share BSE benchmark index outperformed the broader market, with a gain of 151.81 points or 0.28 per cent on Tuesday.

"Midcaps and smallcaps continued to bleed as profit-booking sets in post sharp rally witnessed in them over the last 2-3 months," Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd, said.

From the smallcap index, Jindal Poly Films plunged 11.62 per cent, Ambika Cotton Mills plummeted 10.15 per cent, Hindustan Oil Exploration Company dropped 9.99 per cent and Mcleod Russel India Ltd slid 9.88 per cent.

 

The smallcap index closed at 26,065.95 points, lower by 545.72 points or 2.05 per cent.

"What started as a sell-off in metal stocks dramatically triggered a sell-off today in the smallcap index after rallying for several months," S Ranganathan, Head of Research at LKP securities, said.

A strong rebound in midcap and smallcap stocks in recent months made investors book some amount of profit, Binod Modi, Head Strategy at Reliance Securities, said.

In Tuesday's trade, the midcap index closed 194.54 points or 0.85 per cent lower at 22,762.05 points.

Among the midcap stocks, KIOCL tumbled 5.47 per cent, National Aluminium Company declined 5.32 per cent, Steel Authority of India Ltd fell 5.18 per cent and JSW Energy shed 5 per cent.

The smallcap index had reached its lifetime high of 27,323.18 points on August 4 this year. The midcap index had also touched its all-time high of 23,478.8 points on the same day.

So far this year, the smallcap index has gained 7,967.84 points or 44 per cent while the midcap index has rallied 4,820.62 points or 26.86 per cent.

The BSE benchmark has jumped 6,803.33 points or 14.24 per cent so far this year.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Aug 10 2021 | 8:08 PM IST

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