Market Analysis: Navigating the Recent Downturn in Small and Midcap Stocks.
The past month has presented challenging times for investors in the Nifty Midcap 100 and Nifty Smallcap 100 indices. With the Nifty Midcap 100 declining by 3.35% and the Nifty Smallcap 100 slipping by 7.61%, investors have faced significant headwinds in the current market environment.
Looking at the performance over the last week, the Nifty Midcap 100 dropped by 4.65%, while the Nifty Smallcap 100 slid by 6.51%. These declines underscore the heightened volatility and uncertainty prevailing in the market.
Zee Business research highlights that the biggest intraday fall in the Nifty Midcap 100 occurred on January 23, 2024, and the index has experienced a decline in 25 out of the last 35 trading sessions as of March 13, 2024. Similarly, the Nifty Smallcap 100 has faced challenges, with its largest intraday fall since February 12, 2024.
Anil Singhvi, managing editor at Zee Business, shares his insights into navigating this downturn in small- and mid-cap stocks. Singhvi emphasizes that while many stocks have experienced a significant correction of 60-70%, there may still be some weakness ahead. He advises investors to exercise patience, suggesting that the correction may continue for some time.
Singhvi recommends investors to create a list of high-quality shares and suggests that opportunities to buy these stocks may arise at the end of March. He advises holding onto these stocks through April to capitalize on potential gains, emphasizing the importance of patience and strategic decision-making in turbulent market conditions.
Top Losers and Gainers Since February 8, 2024:
Top 5 Losers in Nifty Midcap 100:
- Paytm: -22.5%
- NHPC: -20%
- IRFC: -19.6%
- FACT: -21.7%
- ABFRL: -22.3%
Top 5 Gainers in Nifty Midcap 100:
- PB Fintech: +16.3%
- APL Apollo Tubes: +15%
- Tata Chemicals: +14.4%
- Oil India: +11.9%
- Polycab India: +11.5%
Top 5 Losers in Nifty Smallcap 100:
- IIFL Fin: -34.8%
- SJVN: -31.2%
- Angel One: -29.7%
- NBCC India: -28%
- TTML: -26.3%
Top 5 Gainers in Nifty Smallcap 100:
- Natco Pharma: +10.7%
- Intellect Design: +9.2%
- KEC International: +6%
- Medplus Health: +5.3%
- Glenmark Pharma: +4.4%
These insights provide investors with valuable perspectives on navigating the current market landscape and identifying potential opportunities amidst the downturn in small and midcap stocks.
Sources: Zee Business
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