BSE Smallcap down 22% from all-time high: What's fueling downturn?
What's the story
The Indian stock market witnessed a major bloodbath this week, with the BSE Smallcap index witnessing a 22% fall from its all-time high.
The fall was mainly attributed to US President Donald Trump's reciprocal tariff announcement, Indian Rupee depreciation against the US Dollar, mixed corporate earnings, and continued FII selling pressure.
Over 450 small-cap stocks witnessed a fall of 10-41% in their values.
Market overview
Sectoral indices and benchmark indices also affected
The market turbulence also affected all sectoral indices, with Nifty Realty index losing 9.4%, Nifty Media falling 8%, and Nifty Energy index declining by 7%.
Meanwhile, the BSE Large-cap index fell by 3.3%, while the BSE Mid-cap index saw a decrease of 7.7%.
The benchmark indices also witnessed a sharp sell-off, with the Sensex dropping by nearly 1,900 points and the Nifty ending 2.68% lower.
Expert insights
Market analysts predict further weakness
Amol Athawale, VP-Technical Research at Kotak Securities, said that the market has slipped below its 20-day Simple Moving Average (SMA), adding to the selling pressure.
He also observed a long bearish candle on weekly charts and a lower top formation, suggesting more weakness ahead.
"If it breaks the 22,800/75,200 support zone then it could slip till 22,600-22,500/74,600-74,300," Athawale warned.
Stock performance
Specific small-cap stocks witness significant losses
Several specific small-cap stocks took a massive hit.
NGL Fine Chem, Excel Industries, Orchid Pharma, Natco Pharma, WPIL, Tilaknagar Industries, Banco Products (India), Senco Gold, Suyog Telematics and Concord Biotech all witnessed their values drop by 25-41%.
However, not all stocks were on the losing end.
Garware Hi-Tech Films, Kennametal India and Godfrey Phillips India managed to post gains despite the market crash.