Mid, small-cap shares extend fall

GMR Infra, JP Power, Jaypee Infra, Federal Bank, Indian Bank, Siemens and Suzlon Energy are down more than 5% on BSE.

Shares of mid-and small-cap companies continued to remain under pressure on Monday, falling by up to 9% second day in a row on surging oil prices on concerns of supply disruption due to rising violence in Iraq. Investors are worried that high oil prices and a weak rupee could add to inflationary pressures.

 

The S&P BSE Small-cap and Mid-cap index are down by nearly 2% each, as compared to 0.49% decline in benchmark S&P BSE Sensex at 1000 hours.

On Friday, S&P Small-cap index had lost 3.1% or 311 points at 9,674, while S&P BSE Mid-cap index plunged 2.5% or 230 points at 8,936.

Jaiprakash Power, Jaypee Infratech, State Bank of Travancore, GMR Infrastructure, Union Bank of India, JSW Energy from mid-cap and Sterlite Technologies, MTNL, United Bank of India, Patel Engineering, Nava Bharat Ventures and Brigade Enterprises from small-cap index are down more than 5% each.

Crude prices rose to nine-month highs in Asian trade today as investors kept a wary eye on the worsening crisis in Iraq, where insurgents were advancing on the capital Baghdad, the AFP/PTI report suggests.

US benchmark West Texas Intermediate for July delivery jumped 35 cents to $107.26 a barrel in late-morning trade, while Brent crude for August gained 44 cents to $112.90, added report.

Among the individual stocks, GMR Infrastructure has dipped 7% to Rs 30.90 on BSE. Jaiprakash Power and Jaypee Infratech plunged 6% each at Rs 20 and Rs 29 respectively, while Federal Bank, Indian Bank, Siemens and Suzlon Energy slipped 5% each.