The Nifty Small cap index has lost 15.07% over the past one year, and 67% of its constituents have lost value. The Nifty MidCap Index has given up 6.8% in the last one year, and 63% of its constituents are in the red.
Indian equities ended the day in red, with the Sensex snapping its three-day rally to close the session at 38, 897.46 points, down 318.18 points. The broader market continued to be polarised as only a handful of stocks ended the day in green, while over 75% stocks in the broader market came under intense selling pressure.
The Nifty Mid and Small cap indices have been losing the most in 2019, even as the benchmark indices have generated positive returns so far in the year. The Nifty Small cap index has lost 15.07% over the past one year, and 67% of its constituents have lost value. The Nifty MidCap Index has given up 6.8% in the last one year, and 63% of its constituents are in the red.
Following the disclosures made by Yes Bank on its asset quality on Wednesday, Bank Nifty gave up 356.90 points during the day’s trade before settling at 30,430.60 points down 0.99%. Shares of Yes Bank saw heavy selling throughout the session and slumped nearly 13% on Thursday, following poor quarterly results. The private lender, which commanded a market cap that was higher than those of Cipla, UPL and Indiabulls Housing Finance in early this year, has lost more than half of it in just six-and-a-half months to become the smallest member on the Nifty index.
The market capitalisation of the bank stood at Rs 19,896 crore on Thursday’s close. Continuous downgrades by rating agencies has also worsened the outlook for banks.
Even as most financial stocks fell on Thursday, mortgage major HDFC crossed the milestone of Rs 4 lakh crore in Mcap to become the fourth most valuable company here.
Investor sentiment has also been dampened by weak earnings reported so far by some of the heavyweights. The Street continues to be cautious about blue chip stocks too as the trend so far has been somewhat mixed. Reliance Industries, whose earnings are scheduled to be announced on Friday, dragged the Sensex most by contributing 62.58 points to the overall fall. Four stocks — RIL, TCS, ICICI Bank and State Bank of India — collectively contributed to more than half the fall in the Sensex.