BSE Smallcap index tanks over 17% in 2 months; 131 stocks at 52-week low

Analysts expect this painful phase for the small-cap stocks to continue for some more time, at least till the corporate earnings start to show signs of improvement.

Shares of smallcap companies have been under pressure amid tepid corporate earnings growth in the December 2024 quarter (Q3-FY25) and selling by foreign portfolio investors (FPIs).

 

In the past two months, the smallcap index on the NSE has tanked 17.5 per cent its record high level of 57,827.69 touched on December 12, 2024. The index is on the cusp of hitting a 'bear phase', termed as a fall of 20 per cent or more from the recent peak.

 

On Tuesday, the BSE Smallcap index slipped nearly 3 per cent in intra-day deals. At 10:46 AM; the BSE Smallcap index, the top loser among broader indices, was down 2.65 per cent at 47,739.69 levels. In comparison, the BSE Midcap index and BSE Sensex were down 2.2 per cent and 0.5 per cent, respectively.

12:42 PM

Technical chartists

Technical chartists, too, suggest that the overall structure of the Indian stock markets is weak and prone to a further downside in the weeks ahead. A fresh sell-off, they said, is possible if the 20-day simple moving average (SMA), or 23,300 (Nifty) / 77,000 (Sensex) is broken.