Mumbai: Many stocks continue to fall due to nervous selling in the falling market, as hot money is coming out of small and mid-cap shares, causing overvailing, fundamentals and funds to include many weak shares in their investment portfolio by funds. Is. , Currently 70 per cent of this sector shares are trading below 200-day moving average (DMA). As a result, the start of the calendar year 2025 has also been weak, so far the Nifty Mid Cap index has fallen by 7 percent and the Nifty Small Cap by 9 per cent has fallen by 9 per cent. At the same time, the Nifty 50 index has fallen by just two percent.
As a result of a steady decline in small and mid -cap stocks, out of 400 shares included in the Nifty Mid Cap 150 index and 400 shares included in the Nifty Small Cap 250 index, prices of 280 shares have started trading below the 200 -day moving average (DMA).
In Indian stock markets, on the one hand, foreign portfolio investors (FPIs) have continued to sell stocks, on the other hand, local funds-Ghrelu institutional investors have continued to buy less in stock, even though stock prices continue to fall. , On the other hand, prices are falling despite select shopping in large cap stocks.
Small, midcap stocks have seen a huge historical rise in the last few years and have seen a major decline in the last few months. Finally, both small and mid -cap indices recorded negative returns in the calendar year 2019. At that time, the Nifty Mid Cap 100 index had fallen by four per cent and the Nifty Small Cap 100 index by 10 per cent. Since then, there has been a huge increase in these indices. But in the last months of 2024, the valuation of several stocks became expensive and big selling started in the shares.
In the calendar year 2025, 109 shares out of 150 in Nifty Midcap 150 index i.e. 72 per cent are currently trading below 200 days of moving average (DMA). On the other hand, out of 250 shares of the Nifty Small Cap 250 index, 171 stocks or 68 per cent stock are trading below the 200-day moving average (DMA).
Among these shares, Kalyan Jewelers India, Keins Technology, Aditya Birla are among the stocks that will fall by 40 per cent in the calendar year 2025. These include KEC International, Oracle Finserv, Oberoi Realty, PB Fintech.
BNP Pariba says that the huge boom in midcap and smallcap stocks has made their evaluation very expensive, especially compared to largecap shares. In such a situation, investors should focus on largecap shares.
