The shares of midcap and smallcap companies strongly tumbled on May 6, pushing the broader market indices sharply into the red. The Nifty Smallcap index dropped 2.5 percent to end the session at Rs 16,195, while the Nifty Midcap index dropped 2.3 percent to close at 53,436.
The broader market indices underperformed in comparison to the benchmark indices, which closed with marginal losses only. Sensex fell 156 points to stand at 80,641, while the Nifty 50 was down 0.5 percent to hover around 24,336.
Nifty Midcap index:
Godrej Properties, Bank of India and Union Bank of India were the top losers on the Nifty Midcap index, falling over 6 percent each.
Paytm shares followed, dropping nearly 6 percent to close at Rs 816.50 apiece. The company is set to announce its results for the fourth quarter of the financial year 2025. Motilal Oswal expects the company to post a net loss of Rs 112 crore for Q4 FY25, as per CNBC-TV18.
Suzlon Energy, Motilal Oswal Financial Services and BHEL shares meanwhile fell over 5 percent each.
Cummins India shares fell nearly 5 percent, marking its worst fall in nine months. This comes after its parent company withdrew its 2025 guidance, owing to tariff-related uncertainties, during its earnings call.
Other notable midcap stocks which recorded strong losses included IREDA, HUDCO, Kalyan Jewellers, Policybazaar, Bandhan Bank, Premier Energies, Dixon Tech, Hindustan Zinc, Indian Bank, Prestige Estates, RVNL and more.
Nifty Smallcap index:
Sonata Software shares were the top loser on the Nifty Smallcap index, dropping nearly 8. The stock has now snapped its two day gaining streak, during which it jumped nearly 9 percent. The sharp rally came after the company reported a 46 percent rise in net profit to Rs 113.45 crore in Q4 FY25.
Other notable smallcap stocks which recorded significant losses include RailTel, CAMS, Poonawalla Fincorp, NBCC, Angel One, Hindustan Copper, Inox Wind, MCX, Titagarh Rail Systems, Anant Raj, Cyient, IDBI Bank, Natco Pharma, Castrol India, MGL, IEX, PVR Inox, BEML and more.
"The uncertainty regarding the India-Pak tensions will keep the market range-bound in the near-term," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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