Key Points
In today's intraday trade, the Nifty smallcap 100 index took a sharp dive of 4.8%, slipping below the 15,000 mark to reach an intraday low of 14,366 points..
As of 01:00 p.m., 99 out of the 100 stocks in the index are trading in the red, with some stocks such as Rites, HUDCO, Data Patterns, NMDC Steel, IRB Infrastructure Developers, Cochin Shipyard, SJVN, Nalco, the Central Bank of India, Indian Overseas Bank, Jyothy Labs, Century Textiles & Industries, NLC India, HFCL, KEI Industries, MRPL, UCO Bank, Global Health, and Angel One trading with losses between 5.5% and 11%..
The downward trend in small-cap stocks was triggered by concerns raised by market regulator SEBI regarding the froth building up in small-cap and mid-cap segments..
In light of this, ICICI Prudential Mutual Fund said in a notice that it will no longer accept lump-sum deposits in its mid- and small-cap plans beginning March 14..
Meanwhile, retail investors who have built up their portfolios by investing in small and mid-cap stocks to take advantage of the rally, regardless of valuations, are bearing the brunt of the pain, as the majority of stocks in the Nifty Smallcap 100 index are trading at discounts ranging from 10% to 45% from their 52-week highs..
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