Broader market down on profit taking; Mid-cap, Small-cap drop 2%

Shares of mid and small-sized companies listed on the BSE are under pressure on account of profit booking

The BSE Mid-cap index was down 2.4% and the Small-cap index was down 2%

 

Shares of mid and small-sized companies listed on the the Bombay Stock Exchange (BSE) are under pressure on account of profit booking after sharp gains in the previous few sessions.

 

The Small-cap index is down 2.4% at 1,1051 on the BSE at 12.20 hours. The index hit fresh six-year high of 11,550 levels on November 19. Most the stocks from the index are trading lower by 3-13%. On the other hand, the BSE Mid-cap index has declined 2% and is quoting at 10,008 levels as against 0.5% fall in the benchmark indices.

 

Shares of Power Grid Corporation of India is trading lower by 3.4% at Rs 137, extending its previous day’s 3% fall on BSE, after the Reserve Bank of India (RBI) put restrictions on further purchases of shares of the company by foreign investors.

 

Shares of many Mid-cap and Small-cap banks are trading lower between 1-4% on profit booking after rallying 20% in past one and half months.

 

Canara Bank, Bank of India, Federal Bank, Yes Bank, Punjab National Bank, Kotak Mahindra Bank and Bank of Baroda are down between 2-4% on the BSE.

 

Among realty stocks, Indiabulls Real Estate and Unitech have plunged 8% each at Rs 74.65 and Rs 18.20 respectively.  National Building Construction Corporation (NBCC) slipped 4% to Rs 727, while Housing Development and Infrastructure (HDIL) and Delta Corp dipped 5% each at Rs 78.50 and Rs 93.20 respectively. Oberoi Realty slipped 4% at Rs 240 on the BSE.

 

Shares of companies that have insurance subsidiaries which had rallied in the recent past have retreated in today’s trade as opposition parties likely to unite against Centre on passage of FDI in Insurance Bill. Reliance Capital dipped 6%, Max India lost 4% and Exide Industries declined over 3%.

 

The overall breadth of the BSE Mid-cap index remains weak as 221 stocks are declining while 45 stocks are advancing. Also, the market breadth is dismal on the BSE Smallcap index with 422 shares declining and 40 shares advancing.