Indian equity markets continued their losing streak for the sixth consecutive session, with benchmark indices opening in the red on Wednesday. The Sensex slipped over 500 points in early trade, while the Nifty dipped below the 23,000 mark in the early trading hours.
The broader market also faced heavy selling pressure, with sectoral indices trading in the negative zone. The BSE SmallCap Index saw a sharp slide, shedding over 1,000 points in today’s session. As of the latest update, the ndex was trading at 45,868.95, down 1500.32 points or 3.17%.
BSE SmallCap index performance
This downward trend follows Monday’s 2% plunge, adding to last week’s losses when the index tumbled nearly 3% in a single session. Over the last three trading days, the BSE SmallCap index has fallen by more than 7%, reflecting sustained bearish sentiment in the broader market.
The BSE SmallCap index has been on a steep decline over the past few months. In just the past five days, the index has plunged over 9%, while the losses over the past month stand over 8%. The six-month performance paints an even grimmer picture, with the index tumbling by 14%.
“The Carnage in markets is partly because SIPs in mid and small caps are being discontinued by investors. Funds are failing in stress test as they are caught on the wrong foot. Valuation of stocks in mid & small caps are way above growth earnings, very high. Withdrawals are being seen across small and mid cap funds. Possibility of some small cap funds winding down is also leading to the sell off,” said Deven Choksey, Managing Director of DRChoksey FinServ.
Top losers
Shares of several companies saw a sharp decline in today’s trading session. Shares of several companies saw a sharp decline in today’s trading session. Gensol Engineering declined the most, falling 16%, followed by Seamec, which dropped 11.81%. Kirloskar Oil Engines slipped 11.19%, while Suyog Telematics fell 11.03%. Meanwhile, Benaras Hotels was down 11%, trading in the red.
The stock market downturn has hit several mid and small-cap stocks hard, with sharp declines in valuations. Here’s how the companies have performed recently:
Gensol Engineering
Gensol Engineering has dropped 7.66% in the past five days, with a 52-week high of Rs 11,800 and a low of Rs 7,400.
Seamec
Seamec has been one of the worst-hit stocks, plunging 23% in the past five days. Over six months, the stock has lost nearly 46%, while in the past year, it has fallen 33%.
Kirloskar Oil Engines
Kirloskar Oil Engine has lost 19% in the last five days, now trading close to its 52-week low of Rs 691, far from its peak of Rs 1,450.
Suyog Telematics
Suyog Telematics has suffered a 31.42% drop in just five days, and over the past year, it has declined 31%, now nearing its 52 week low of Rs 985. The 52-week high is Rs 1,968.
Unlike other stocks, Benares Hotels has shown resilience. While it has fallen over 3% in the last five days, it has gained over 28% in the past month and 10% over the past year.