Midcap and smallcap indices fall for 2nd consecutive week
What's the story
The broader market indices continued their downward trend for the second consecutive week, mirroring the performance of benchmark indices. The decline comes amid rising global uncertainty over renewed tensions in the Middle East, which have pushed Brent crude prices above $100 per barrel. However, despite these challenges, stock-specific buying and mixed Q1 earnings from Indian companies have helped the broader market outperform benchmark indices during this period.
Index performance
Nifty Midcap 100 index falls by a marginal 1.2%
The BSE Sensex fell 2,091.68 points or 2.67% to settle at 76,059.77 while the Nifty 50 lost 566.85 points or 2.32% to end at 23,767.45 during this period.
The Nifty Midcap 100 index fell by a marginal 1.2%, with Motilal Oswal Financial Services and Oracle Financial Services Software being the contributors to this decline.
Meanwhile, Mahindra and Mahindra Financial Services and Astral emerged as gainers in this segment of the market during this period under review.
Smallcap performance
Nifty Smallcap 100 index declines 2%
The Nifty Smallcap 100 index witnessed a sharper fall of 2% during this period.
Bandhan Bank and Aptus Value Housing Finance India were among the biggest losers in this segment, witnessing declines between 7-22%.
However, Data Patterns (India) and Karur Vysya Bank emerged as key gainers with gains ranging from 6-12%.
The mixed performance highlights the volatility of small-cap stocks amid broader market trends.
Sectoral trends
Nifty Private Bank biggest loser
Most sectors witnessed a decline during this period, with the Nifty Private Bank index being the biggest loser at 4.32%. This was mainly due to profit booking in heavyweight lenders.
The Nifty Realty index fell 4.02%, while other indices like Capital Markets, Oil & Gas, and IT also witnessed losses of up to 2.61%.
These declines were largely driven by weakness in global technology stocks and profit booking by investors amid rising oil prices and geopolitical tensions.
Future predictions
Market experts advise cautious approach
Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, said the Indian equity markets witnessed a sharp correction due to rising global uncertainties and elevated crude oil prices.
He advised a cautious approach until the index decisively surpasses key resistance zone.
Sachin Gupta from Choice Equity Broking echoed this sentiment, advising traders to remain selective and adopt a buy-on-dips approach near strong support levels until market shows signs of sustained strength.