Mid, small-caps suffer worst day of 2024 amid stress test, tight MF norms

Stock market crash: Benchmark indices NSE Nifty 50 and S&P BSE Sensex declined on Wednesday on bro-based selling pressure at near record high levels, while small- and mid-caps witnessed ir worst session in 2024, ahe of results of a stress test of mutual funds. 

Both Nifty 50 and BSE Sensex today slipped below psychological levels of 22,000 and 73,000 from ir respective day highs of 22,446.75 and 74,052.75. 

blue-chip NSE Nifty 50 closed 1.51 per cent lower at 21,997.70, while 30-share BSE Sensex dipped 1.23 per cent to end at 72,761.89.

All sectoral indices except for Nifty FMCG ended in red today with Nifty Metal, Nifty Media, and Nifty Realty declining over 5.5 per cent. Nifty Oil & Gas dipped 4.87 per cent followed by Nifty PSU Bank which fell 4.27 per cent.

Rahul Sharma He Technical and Derivatives Research, JM Financial Services, said “It seems like large-caps have joined correction in small-caps and midcaps which have been under severe selling pressure in last few days. Nifty has a derivatives support at 22,000 so any sustenance below same should be taken as an indication of caution for longs. only silver lining today has been in select private banks and FMCG stocks which have held ir ground amidst a market-wide selloff.”

So far in March, small- and mid-caps are down 9.25 per cent and 4 per cent, compared with 0.4 per cent rise in Nifty 50, on rising concerns of potential froth. stress tests of mutual funds, as directed by Securities and Exchange Board of India, will be disclosed from March 15. Reports indicate BSE companies erased Rs 14 lakh crore in market valuation on Wednesday, March 13, 2024.

Rupak De, Senior Technical Analyst at LKP Securities, “Recently, small and midcap stocks faced a bumpy ride due to SEBI's vigorous crackdown on over-speculation, prioritising safeguarding of market participants' interests. Both indices slipped below ir recent consolidation levels, sparking increased bearishness among market participants.”

"Moreover, y've dipped below crucial short-term moving averages, furr dimming overall sentiment. While buying on substantial dips may offer opportunities, it's essential to be highly selective and focus on specific stocks within broer market landscape," De ded.

Sensex top gainers

• ITC: 4.29 per cent
• ICICI Bank: 0.47 per cent
• Nestle Ind: 0.33 per cent
• Kotak Bank: 0.27 per cent
• Bajaj Finance: 0.15 per cent
• Infosys: 0.05 per cent
• HDFC Bank: 0.01 per cent

Sensex top losers

• Powergrid Corp: -7.03 per cent
• NTPC: -6.68 per cent
• Tata Steel: -5.90 per cent
• Tata Motors: -4.25 per cent
• JSW Steel: -3.32 per cent
• Bharti Airtel: -3.08 per cent

Nifty top gainers

• ITC: 4.34 per cent
• ICICI Bank: 0.48 per cent
• Kotak Bank: 0.29 per cent
• Bajaj Finance: 0.22 per cent
• Cipla: 0.13 per cent

Nifty top losers

• PowerGrid: -7.07 per cent
• Coal India: -7 per cent
• ani Enterprises: -6.81 per cent
• NTPC: -6.70 per cent
• ani Ports: -6.47 per cent
• Tata Steel: -6 per cent