Shares of small and midcap companies are under selling pressure on February 17, with the select broader markets names deep in the red over valuation concerns and weak earnings. The Nifty Smallcap 100 index as well as Nifty Midcap 100 were down over a percent at around 12:45pm.
Select names like Pix Transmissions, DEE Development Engineers, Zen Technologies and Best Agrolife were the top losers on the BSE Smallcap index, falling 20 percent each on the back of weak results for the third quarter of this fiscal.
Also Read: Zen Tech share price hits 20% lower circuit after Q3 numbers
These names were followed by Mangalam Cement, Magellanic and Senco Gold shares, which fell over 12 percent each.
On the BSE Midcap index, shares of Rail Vikas Nigam (RVNL) were the top loser, falling as much as 5 percent, staging a mild recovery after falling 7 percent at opening bell. This comes after the company reported a 13% on year fall in the net profit at Rs 311 crore for the third quarter.
RVNL shares were followed by CRISIL, Relaxo Footwear, UNO Minda and Thermax, which fell over 4 percent each. Policybazaar parent PB Fintech saw a nearly 4 percent decline in share price, while Bharti Hexacom, Mazagon Dock and Godrej Properties shares fell over 3 percent from their respective previous closing prices.
In a weak market, some stocks traded with significant gains, with shares of GSK Pharma higher by 20 percent, while Godfrey Phillips and Sandur Manganes were up over 18 percent each.
The small and midcap stocks have been facing significant selling pressure in the past few weeks, with the BSE Mid and Smallcap indices having fallen nearly 1 percent in dollar terms, and up by only 3.5 percent each in rupee terms over the last one year.
Recently, ICICI Pru AMC's veteran CIO S Naren had advised caution regarding SIP investment in mid and small-cap stocks.
"We think it is a clear time to take out lock, stock, and barrel from small- and mid-caps," he said at an event in late January.
Naren cautioned that 2025 could be the most dangerous year since the 2008-2010 period.
"Investors lost money in many companies back then, particularly in banks. Many real estate companies also made mistakes by over-leveraging, but those mistakes happened indirectly—through banks and corporates. Today, when companies seek capital for acquisitions or new projects, they no longer rely on bank borrowing. Instead, they raise money directly from equity investors through qualified institutional placements (QIPs) or IPOs," Naren said.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
