 "Smallcap extends fall, down 4%; Anant Raj, Netweb, Newgen tank up to 20%")
Shares of smallcap companies have continued to remain under pressure, with the BSE Smallcap index declining 4 per cent in Tuesday’s intra-day trade so far. The index has extended its past two day’s fall of 6 per cent, as foreign portfolio investors (FPIs) extended their selling streak amid concerns over an earnings growth slowdown.
The BSE Small index hit an intra-day low of 46,475.43 on the BSE. It is trading at its lowest level since June 6, 2024, when the index had hit a low of 47,386.41 in intra-day trades then. A total of 204 stocks from the index have hit their respective 52-week lows today.
Thus far in the month of January, the BSE Smallcap index has tanked 16 per cent, as compared to the 12 per cent decline in the BSE Midcap and a 3 per cent fall in the BSE Sensex. The Smallcap index has corrected 20 per cent from its all-time high level of Rs 57,827.69, touched on December 12, 2024. Sustained FPI selling (Rs 69,492 crore in January, so far) is impacting the markets. Despite domestic institutional investors (DIIs) buying shares worth Rs 73,587 crore in January, so far, the market has continued to remain under pressure.
Anant Raj (down 20 per cent at Rs 534.45), Netweb Technologies (10 per cent at Rs 1,460.35), Newgen Software Technologies (10 per cent at Rs 951.35), Solara Active Pharma Sciences (10 per cent at Rs 502.70), and Siyaram Silk Mills (10 per cent at Rs 772.90), from the BSE Smallcap index locked in lower circuit in intra-day trades today.
Kaynes Technology India, PG Electroplast, Hitachi Energy India, Poly Medicure, Zen Technologies, Apar Industries, 360 One Wam, VA Tech Wabag and Gravita India have fallen in the range of 10 per cent and 20 per cent in intra-day trades today. Most of these stocks had a strong run-up in the previous calendar year 2024 (CY24).
Among the individual stocks, Anant Raj locked in a lower circuit of 20 per cent at Rs 534.25 on the back of an over three-fold jump in average trading volumes. The stock of the real estate company has corrected 44 per cent from its record high level of Rs 947.25, touched on January 8, 2025. In CY24, the stock had zoomed 190 per cent, as compared to the 8 per cent rise in the BSE Sensex.
Anant Raj is engaged in the business of real estate development (residential and commercial) in the National Capital Region (NCR), Rajasthan and Haryana. Additionally, the company is also expanding its existing commercial properties in Delhi and is setting up its data center vertical.
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Shares of Kaynes Technology India slipped 20 per cent to Rs 4,215.20, after the company reported a relatively modest growth compared to its current run-rate due to demand slowdown.
The company reported revenues of Rs 509 crore, up by 30 per cent year-on-year (YoY), and 15.6 per cent quarter-on-quarter (QoQ), as against a run-rate of around 60 per cent 9MFY25. The company reported around 62 per cent revenue compound annual growth rate (CAGR) over FY21-24.
With today’s fall, the stock has plunged 46 per cent from its record high of Rs 7,824.95, touched on January 1, 2025. However, in CY24, it had zoomed 184 per cent. It had skyrocketed nearly 13 times, or 1,163 per cent, against its issue price of Rs 587 per share. Kaynes made its stock market debut on November 22, 2022.
Shares of Hitachi Energy India tanked 20 per cent to Rs 8,738.05 in intra-day trades today. It has fallen 47 per cent from its 52-week high level of Rs 16,534.50 hit on October 11, 2024.
Hitachi Energy is a global technology leader serving customers in utility, industry, transportation, data centers and infrastructure sectors. In the September quarter (Q2FY25), the company had recorded 19.9 per cent year-on-year (YoY) decline in its orders to Rs 1,952 crore, from Rs 2,436.70 crore in Q2FY24.
Shares of 360 One Wam were down 12 per cent to Rs 944.25, after the company reported revenues of Rs 760 crore, which was up by 20.6 per cent YoY, but lower by 12.1 per cent sequentially.
Besides, 360 One Wealth and Asset Management (WAM) announced its acquisition of Batlivala & Karani Securities and Batlivala & Karani Finserv for Rs 1,884 crore, comprising Rs 200 crore in cash.
The deal, structured as a stock swap and cash transaction, aims to enhance 360 One's broking capabilities across various market segments. Saahil Murarka, B&K's managing director, will join 360 One to lead its broking and capital markets business. This acquisition follows a significant increase in profit for 360 One, reflecting its strategic growth in the wealth management sector and further enhancing its market position and service offerings, ICICI Securities said in a note.