The broader market--which houses smallcap and midcap stocks--reeled under pressure amid broad based selloff on January 10 as investors took a cautious stance ahead of the US jobs data that will decide the course of the Federal Reserve's policy easing cycle.
Names like Piramal Pharma, Firstsource Solutions, and Titagarh Railsystems were the worst hit within the Nifty Smallcap 100 with their 5 percent fall. On the other hand, Tata Elxsi was the biggest midcap laggard after it slumped over 7 percent on the back of its weak Q3 numbers. Other losers included Paytm, Aurobindo Pharma and Kalyan Jewellers, which dropped 5 percent each.
With the sharp losses, the Nifty Smallcap 100 index slipped 1.5 percent while the Nifty Midcap 100 was down 1.1 percent.
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Meanwhile, the onset of the Q3 earnings also spread jitters across the broader market as optimism over strong results runs tepid at best. While not much spark is expected of the Q3 earnings season, any underperformance could lead to further selling within small and midcaps, analysts believe.
In addition, looming uncertainty regarding President Trump’s likely actions has also kept investors on the edge. "In such conditions, the market is unlikely to rally in the near-term. There also appears to be no respite to the sustained FII selling, which will continue to put pressure on the market," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
FIIs have been relentlessly selling Indian equities since the second half of December and the broader market has been a major victim, all thanks to the stellar returns it has delivered in the past two years. On that account, most analysts feel that the performance within the broader market will be more stock specific going ahead.
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