Smallcap shares dip amid FII promoting, tariff concernsMumbai, Aug 10 (IANS) Broader indices lagged behind benchmark indices, declining for the third consecutive week as US President Donald Trump threatened 50 per cent tariffs on Indian items.
BSE largecap and midcap indices fell 1 per cent every this week, whereas the BSE smallcap index declined practically 2 per cent.
The Nifty smallcap 100 dropped 8.31 per cent in a month, closing at 17,478. The Nifty midcap 100 fell 5.62 per cent in a month ending at 57,094.
PG Electroplast, Kitex Clothes, Titagarh, Ramco Cement, Unichem Laboratories, Morepen Laboratories and Advait Power Transitions reported declines of 6 to 24 per cent.
Market volatility amid combined quarterly earnings and ongoing overseas institutional investor promoting following the US new tariffs on India, resulted in underperformance of broad cap indices.
International institutional traders (FIIs) web offered equities value Rs 10,652 crore, marking their sixth consecutive week of promoting. Home institutional traders (DII) continued their shopping for streak within the sixteenth week, buying equities valued at Rs 33,608.66 crore.
On the sectoral entrance, Nifty Pharma, Realty, FMCG, and Healthcare sectors fell by 2 per cent every. In distinction, PSU Financial institution, media, and metallic sectors elevated by 0.5 to 1.5 per cent.
Small caps outperformed large-caps in 2024 however started 2025 with cautious outlooks resulting from excessive valuations and potential earnings slowdown. A minimum of 10 penny shares, primarily small-caps, have dropped 60 to 80 per cent in FY26 up to now.
On the sectoral entrance, home demand-driven segments similar to infrastructure, choose autos, and rural-focused FMCG could show relative resilience if macro situations maintain regular, analysts mentioned.
Ajit Mishra from Religare Broking Ltd mentioned, “The Nifty’s shut beneath 24,450 has elevated the danger of additional correction, with rapid help positioned close to 24,200. On the upside, resistance is predicted across the 24,600–24,800 zone, with a stronger barrier at 25,200.”
“Broader market indices stay susceptible given their larger beta to FII outflows. Any rebound is prone to be short-lived except accompanied by easing commerce tensions and a reversal in FII flows,” he added.
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