The small- and mid-cap shares came under sharp selling pressure on Monday as investors booked profits, dragging several stocks down by up to 12 percent and tracking weakness in the benchmark indices.
The Nifty Smallcap100 index declined for the fifth straight session, slipping up to 3 percent in intra-day trade. The index has fallen more than 4 percent over the past five sessions.
Kaynes Technology India was the biggest loser in the Smallcap100 pack. The stock dropped around 12 percent, extending significant losses for the third consecutive session after Kotak Institutional Equities raised concerns over inconsistencies in the company's related-party disclosures.
The shares of the company have dropped to Rs 3,835.50 apiece, the lowest level seen by the stock in nearly 10 months. The sharp drop in the share price has resulted in strong market cap erosion for the EMS player.
Kaynes Tech shares tumble 12%, sell-off wipes out nearly Rs 10,000 crore from m-cap in three days
Data Patterns (India) and Reliance Power were also among the major drags, declining 5.93 percent and 5.25 percent, respectively. Other notable losers included Poonawalla Fincorp, Aditya Birla Real Estate, Anant Raj, Deepak Fertilisers and Petrochemicals Corporation, and Ola Electric Mobility, which fell up to 5 percent.
The Nifty Midcap100 index also slipped about 2 percent. Godrej Properties was among the top laggards, dropping 5.54 percent to Rs 115.30 on the NSE.
Naren Agarwal, CEO, Wealth1, added "Today’s sell-off was a classic ‘de-beta’ day: the Nifty 50 slipped below the 26,100 zone with a mild decline, but the brunt of the correction hit the broader market. The Nifty Smallcap 100 fell sharply—around 1.5–1.8% intraday—while midcaps weakened in the 0.4–0.8% range. Volatility inched higher and the market grappled with continued foreign outflows this month, alongside traders de-risking ahead of a crucial global rate decision. A few crowded thematic pockets—defence electronics, renewables, and smaller industrial names—saw exaggerated unwinding, amplifying the pressure on leveraged positions. This was less a comment on India’s domestic trajectory and more a reset driven by positioning, liquidity and global macro cues.”
Mahindra & Mahindra Financial Services, Bharat Dynamics, Housing & Urban Development Corporation and Prestige Estates Projects were also down as much as 5 percent.
Broader market sentiment remained weak, mirroring declines in the Sensex and Nifty as investors turned cautious ahead of the US Federal Reserve’s policy meeting and continued foreign fund outflows.
The Sensex fell 609.68 points or 0.71 percent to 85,102.69, while the broader Nifty declined to 25,960.55, down 225.90 points or 0.86 percent.
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