Mid and small-cap indices down over 2%

Bhushan Steel, Vardhman Textiles, Indiabulls Real Estate, ITNL, Jubilant FoodWorks, Trent, Voltas and Unitech were down 5-10%.

Shares of mid-and-small-cap companies are under pressure falling by up to 12% as geopolitical tensions escalated after Barack Obama authorized air strikes in Iraq.

Bhushan Steel, Vardhman Textiles, Indiabulls Real Estate, IL&FS Transportation Networks, Jubilant FoodWorks, Trent, Voltas and Unitech from BSE mid-cap index declined in the range of 5-10%, while Hikal, Puravankara Projects, C Mahendra Exports, Cressanda Solutions, Pantaloons Fashions and Retail, Kothari Products, Bombay Dyeing and Dhanlaxmi Bank from small-cap index plunged between 7-12%.

At 1400 hours, S&P BSE mid-cap index slipped 2% or 192 points at 8,959 and S&P BSE small-cap index 2.4% or 240 points at 9,803 compared to 1% or 275 points decline in benchmark index S&P BSE Sensex at 25,315. The NSE CNX Nifty was down by 1% at 7,568.

Geopolitical tensions and extended sanctions on Russia likely to pressure on global economy and growth resultant the market may remain volatile as FII's are now becoming net sellers in Emerging markets and continued selling could put pressure on Nifty till its lower support level @ 7380 – 7141, says analyst at Equentis Capital.

Puravankara Projects has plunged 12% to Rs 85, extending its previous day’s 9% fall, after reporting 14.6% year-on-year (yoy) decline in consolidated net profit at Rs 58 crore for the quarter ended June 30, 2014 (Q1).

Bhushan Steel has frozen lower circuit for third day in a row, tanks 10% to Rs 219 on BSE after the Central Bureau of Investigation (CBI) on Thursday arrested the company’s, Vice Chairman and Managing Director, Neeraj Singal, in connection with Rs 50 lakh bribery scandal involving Chairman and Managing Director of Syndicate Bank S K Jain.

The stock is currently quoting at its lowest level since November 2009, falling 45% so far in current week from Rs 395 on August 1.

Vardhman Textiles slipped 10% to Rs 438 after reporting 27% year-on-year drop in its standalone net profit at Rs 106 crore in Q1, due to higher raw material cost.

Jubilant FoodWorks and Trent too declined 6% each at Rs 1,120 and Rs 1,118 respectively, after reporting weak set of numbers for the recently concluded quarter.