Smallcap stocks crash 61% as Nifty hits record highs
What's the story
The Indian stock market witnessed a stark contrast between large-cap and small-cap stocks last week. While the benchmark Nifty index hit new all-time highs, several small-cap stocks witnessed massive corrections. The trend was largely driven by profit-booking, stretched valuations, and thin liquidity in the broader market. The divergence between headline indices and the small-cap universe widened further, with some stocks losing over half their value in just five sessions.
Major fall
Worth Investment and Trading Co suffers steepest decline
Worth Investment and Trading Co saw the sharpest weekly fall in the smallcap space, crashing 61.09%. The stock was dragged down by heavy profit-booking and fragile liquidity. Fischer Medical Ventures was not far behind with a 59.24% drop during the week amid heightened volatility and selling pressure across smaller healthcare names. Magellanic Cloud also witnessed a sharp correction of 50.72%, owing to an unwinding in mid-IT and cloud-linked stocks exacerbating the broader smallcap correction.
Profit booking
Transformers & Rectifiers and Stallion India Fluorochemicals
Transformers & Rectifiers (India) saw a 39.01% decline as investors booked profits after a long rally in power-equipment and transformer companies. Stallion India Fluorochemicals also witnessed a sharp correction of 38.40%, mirroring the pullback across chemicals and specialty materials segment. Antelopus Selan Energy fell by 31.02% as weakness across smaller energy and resources counters continued to weigh on sentiment in the market.
Market correction
Ceinsys Tech and Blue Cloud Softech Solutions
Ceinsys Tech saw a 29.75% decline after several weeks of strong gains. The stock's fall was in line with a broader market correction that affected other small-sized IT services and platform businesses as well. Blue Cloud Softech Solutions also witnessed a similar trend, correcting by 29.73% amid the market cooldown. Chemplast Sanmar slipped by 28.73% for the week as chemical manufacturers faced renewed selling pressure after weak sectoral flows.