Mid, SmallCap indices fall up to 5% amid tough fight for BJP in LS polls

On Tuesday, the broader indices fell in line with the benchmarks erasing gains made on Monday owing to aggressive buying over exit poll predictions. 

The SmallCap index fell by 4.5 per cent at 46,038 levels, while the MidCap slipped 4.9 per cent to 42,159 levels in early trades. In comparison the BSE Sensex fell by 3.67 per cent, while the Nifty 50 was down by 3.75 per cent. 

This came after investors resorted to profit booking while tracking early trends indicating a closer contest between the BJP-led NDA and INC-led INDIA Alliance, diverging from exit poll predictions. As of 10:44 AM, NDA led on 291 seats, with the INDIA Alliance ahead on 225 seats, while others led on 27 seats.

In contrast to early trends, numerous exit polls, conducted by various agencies and media outlets, projected the NDA winning between 316 and 400 seats. These polls were released on Saturday following the conclusion of the seven-phase elections, which commenced on April 19.

Among midcaps REC fell 8.53, PFC by 7.37 per cent, Indian Bank by 7.26 per cent and SJVN by 7.20 per cent. Other midcap shares such as Canara Bank, Bank of India, Union Bank, ACC, SAIL, IREDA and NHPC slumped by 5-6 per each in intra day trade. 

Shares of companies such as JP Associates, Techno Electric & Engineering Company, NDTV, Central Bank, NBCC and Bharat Dynamic fell between 6-10 per cent each among small caps. 

At 10:44 AM; the broader indices recovered from thier day's low, the SmallCap index was trading 2.49 per cent lower at 47,033 levels, whereas the MidCap index was trading 2.89 per cent lower at 43,087 levels. By compaison the BSE Sensex was down 2.68 per cent at 74,387 levels.