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Small-cap stocks witnessed a sharp and broad-based sell-off on Friday, with the Nifty Smallcap 100 index plunging nearly 3 per cent, extending its losing streak to the seventh consecutive trading session amid heavy selling pressure across financial services, technology, industrials and renewable energy sectors.
The Nifty Smallcap 100 index declined 536.45 points, or 2.94 per cent, to 17,739.45, compared to its previous close of 18,275.90, according to National Stock Exchange (NSE) data. Market breadth reflected widespread weakness, with 91 of the index's 100 constituents ending in negative territory, while only nine stocks registered gains. The index opened at 18,221.65 and slipped to an intraday low of 17,571.60, highlighting intense selling pressure across the broader market. The latest decline added to sustained weakness in small-cap equities, with the index falling 7.27 per cent over the past week and 11.27 per cent over the last month. Among individual stocks, IIFL Finance emerged as one of the worst performers, declining 6.25 per cent, followed by ITI at 5.84 per cent and Ola Electric Mobility at 5.57 per cent. Technology-linked stocks also faced selling pressure, with Netweb Technologies declining 5.43 per cent and KFin Technologies falling 5.15 per cent. Financial services stocks were among the hardest hit, with Karur Vysya Bank declining 5.45 per cent, Bandhan Bank falling 5.40 per cent, CreditAccess Grameen slipping 5.28 per cent and Manappuram Finance losing 5.23 per cent. Renewable energy and industrial stocks also remained under pressure, with Inox Wind declining 5.12 per cent, MTAR Technologies falling 5 per cent and TD Power Systems slipping 4.53 per cent. Commenting on the sell-off, Uttam Kumar Srimal, Deputy Head - Fundamental Research, Axis Direct, said, "The ongoing losing streak in the Nifty Smallcap Index reflects a combination of risk aversion, profit-booking and concerns over sustainability of earnings growth in high inflationary scenario, higher crude prices and valuations in the broader market." He added, "Investors should avoid bottom-fishing and focus on companies with strong balance sheets, sustainable earnings visibility, healthy cash flows and reasonable valuations." Srimal noted that a broad-based recovery would depend on stabilisation in market sentiment, revival in institutional flows and earnings performance in the coming quarters. However, a handful of stocks bucked the broader trend, with Sterlite Technologies gaining 2.39 per cent, JSW Cement rising 2.01 per cent and Natco Pharma advancing 1.38 per cent. (ANI)
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