New Delhi, March 13 (IANS) Small and mid cap stocks are coming under intense selling pressure with the regulator raising red flags.
The small cap index is down more than 3 per cent on Wednesday. The mid cap index is down more than 2 per cent. The SME IPO index is down more than 4 per cent.
Other pockets of the market are also very weak with the PSU index down more than 4 per cent.
Market breadth is extremely negative with 83 per cent of the listed stocks declining. More than 700 stocks have hit the lower circuit indicating the meltdown in the small cap stocks.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said in the near-term investors should focus on the sustained weakness in the broader market, particularly the small cap segment. The excessive valuations in these segments driven by the irrational exuberance of retail investors have been a concern for many months now. But it has taken the strong message from the regulator SEBI to trigger a correction in the Nifty Small cap index by 10 per cent from the February 8 peak.
He said that 396 stocks are in the lower circuit indicating that there is more pain to come in this segment. Actions from mutual funds also indicate the excessive valuations in the broader market. ICICI Pru has joined two other leading funds in stopping lump sum investments in their mid and small cap schemes. More are likely to follow. The net impact of this shift would be more money flowing into large caps.
Deepak Jasani, Head of Retail Research, HDFC Securities said adverse breadth data is weighing on the minds of investors and traders.
–IANS
biz/san/uk
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
