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

Stock market crash: Benchmark indices NSE Nifty 50 and S&amp;P BSE Sensex declined on Wednesday on broad-based selling pressure at near record high levels, while small- and mid-caps witnessed their worst session in 2024, ahead of results of a stress test of mutual funds. Both Nifty 50 and BSE Sensex today slipped below the psychological levels of 22,000 and 73,000 from their respective day highs of 22,446.75 and 74,052.75. The blue-chip NSE Nifty 50 closed 1.51 per cent lower at 21,997.70, while the 30-share BSE Sensex dipped 1.23 per cent to end at 72,761.89.All the 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 &amp; Gas dipped 4.87 per cent followed by Nifty PSU Bank which fell 4.27 per cent.Rahul Sharma Head Technical and Derivatives Research, JM Financial Services, said “It seems like large-caps have joined the correction in small-caps and midcaps which have been under severe selling pressure in the last few days. Nifty has a derivatives support at 22,000 so any sustenance below the same should be taken as an indication of caution for longs. The only silver lining today has been in select private banks and FMCG stocks which have held their 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. The stress tests of mutual funds, as directed by the 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, the small and midcap stocks faced a bumpy ride due to SEBI's vigorous crackdown on over-speculation, prioritising the safeguarding of market participants' interests. Both indices slipped below their recent consolidation levels, sparking increased bearishness among market participants.”"Moreover, they've dipped below crucial short-term moving averages, further dimming the overall sentiment. While buying on substantial dips may offer opportunities, it's essential to be highly selective and focus on specific stocks within the broader market landscape," De added.Sensex top gainersITC: 4.29 per centICICI Bank: 0.47 per centNestle Ind: 0.33 per centKotak Bank: 0.27 per centBajaj Finance: 0.15 per centInfosys: 0.05 per centHDFC Bank: 0.01 per centSensex top losersPowergrid Corp: -7.03 per centNTPC: -6.68 per centTata Steel: -5.90 per centTata Motors: -4.25 per centJSW Steel: -3.32 per centBharti Airtel: -3.08 per centNifty top gainersITC: 4.34 per centICICI Bank: 0.48 per centKotak Bank: 0.29 per centBajaj Finance: 0.22 per centCipla: 0.13 per centNifty top losersPowerGrid: -7.07 per centCoal India: -7 per centAdani Enterprises: -6.81 per centNTPC: -6.70 per centAdani Ports: -6.47 per centTata Steel: -6 per cent

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

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

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