On Friday, small and mid-cap indices experienced a notable decline amidst widespread selling, contrasting with the relatively stable performance of the blue-chip Sensex. The PSU stocks followed suit, registering losses across the board, reflecting a broader downturn in the market with most sectoral indices in negative territory.
The BSE small-cap Index dipped by 2.6 percent during the trading session. Notable decliners included MSTC, down by 15 percent, AstraZeneca Pharma by 14 percent, Surya Roshni by 10 percent, RVNL by 9 percent, Bector Foods by 9 percent, BEML by 8 percent, and Onmobile Global by 10 percent.
Similarly, the BSE mid-cap Index also saw a decline of 2.43 percent, with prominent stocks such as PFC, GIC Re, NHPC, REC, Ramco Cement, SJVN, UCO Bank, IOB, IRFC, HPCL, and Patanjali witnessing substantial drops ranging from 5 to 10 percent.
The downturn in the market was particularly pronounced among PSU stocks, with the index plummeting by over 4 percent. Notable losers included MTNL, KIOCL, NBCC, SCI, Railtel, Hindustan Copper, IOC, Nalco, and Hudco, each experiencing significant declines ranging from 6 to 9 percent.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed the market's downturn to bearish sentiment fueled by negative news, including slightly hawkish comments from the RBI Governor on Thursday. Despite positive indicators such as better-than-expected economic performance and GDP growth projections of 7 percent for FY 25, selling pressure persisted, exacerbated by foreign institutional investors (FIIs) liquidating their positions.
However, Vijayakumar remains optimistic, suggesting that the market downturn is unlikely to be sustained, with strong buying expected on dips. He highlights the continued inflow of funds into mutual funds, empowering domestic institutional investors (DIIs) to pursue aggressive buying strategies, countering the bearish sentiment fueled by FIIs' short positions and rising US 10-year bond yields, currently at 4.15 percent.
(With Agency Inputs)
Read also| Markets Show Firm Trend with Buying Interest in Reliance and TCS
Read also| Sensex Surges by 250 Points, Nifty Approaches the 21,700 Mark in Early Trading Session
