
Share Market: Today the performance of small and midcap stocks was very bad in the market. Many midcap and smallcap indices saw a decline of more than 2 percent. This trend has continued for the last one week. This week, the performance of small and mid caps was the worst in the last 15 months and many investors had to suffer the consequences.
The BSE Midcap index closed at 42,750 points with a fall of about 1.6 percent, while the BSE Smallcap index fell by more than 2 percent at the range of 50,100. The Nifty Midcap 100 index saw a decline of 2 percent, while the Nifty Smallcap 100 index fell by more than 2.5 percent.
Market expert Deepak Jasani, while talking to Financial Express, attributed this decline to continuous selling in large caps, which is putting pressure on mid and small cap space. On one hand, there is continuous selling of shares by foreign institutional investors (FIIs) and midcaps are also not giving much returns.
Due to this reason small and midcap shares are crashing
FII selling continues
FIIs have been continuously reducing their stake in the Indian stock market for the last few months. Foreign institutional investors (FIIs) have sold equities worth Rs 60,859 crore in the Indian markets till January 22, 2025. Between October 2024 and the current week, FIIs have sold equities worth more than Rs 1.52 lakh crore in the Indian markets.
Investors are worried about returns
India’s Current Account Deficit (CAD) income for the third quarter of FY 2025 may have been largely as expected, but it was sluggish. This period of decline in earnings may continue for the next few quarters. In such a situation, investors are worried about investing in the market and its impact can be clearly seen on the market.
Selling pressure of large cap shares
A major reason for this decline in the market is the ongoing selling by foreign investors. Large cap shares are being sold on a large scale. Today on Friday (January 24), the market closed in the red. On Friday, Nifty closed below 23,100. There was a decline of up to 3 percent in the market throughout the week.
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