Shillong, November 22: On Wednesday, a notable sell-off is observed in small-cap stocks, surpassing the declines in benchmark indices.
As per IANS, the BSE Small Cap Select Index shows a 1% decrease in trade. Key constituents of the index, including Sonata Software (down 5%), Suzlon (down 5%), KPIT Tech (down over 4%), JSL (down over 4%), and Fortis (down 2%), contribute to the downturn.
Similarly, the BSE Small Cap Index records a 0.33% decline, with notable decreases in Apollo Micro Systems (down 5%), Orient Green Power (down 5%), Patel Engineering (down over 4%), Rattan India Power (down 5%), SEPC (down 5%), and Jindal Saw (down more than 4%).
The BSE 250 Small Cap Index is down by 0.49%, with Motilal Oswal Financial Services (down over 4%) and Raymond (down 4%) experiencing declines.
Despite being strong performers in recent stock market activities, small-cap indices are facing a downturn, a contrast to the benchmark indices.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, notes a narrowing daily market range, suggesting a potential limitation on sharp market moves. The market’s attention today is on the opening of four IPOs, with considerable interest expected in the high-quality Tata Technology IPO.
Vijayakumar advises investors to continue accumulating high-quality large-cap stocks, especially in banking and autos, where a high margin of safety is perceived.