Mid, smallcap indices bleed; Firstcry, Voltas, SAIL, Paytm crash up to 8%

Shares of midcap and smallcap companies came under pressure on Monday as Rising tensions between the US-Israel and Iran have raised concerns about potential disruptions to global oil supply

Following a Friday rebound, domestic mid- and small-cap indices came under pressure on Monday, March 23, as the West Asia conflict entered its fourth week with no clear end in sight. Rising tensions between the US-Israel and Iran, especially around the Strait of Hormuz, have raised concerns about potential disruptions to global oil supply. This has pushed crude prices higher and added worries about inflation and global economic growth.

 

At 10:50 AM, the Nifty Midcap 100 index was down 3.5 per cent at 52,936.40 levels, while the Nifty Smallcap 100 was lower by 3.83 per cent at 15,116.50 levels.

 

 

On March 21, US President Donald Trump warned he would “obliterate” Iran’s power plants if it failed to reopen the Strait of Hormuz within 48 hours. In response, Iran threatened to strike energy and desalination facilities in the Gulf. 

 

VK Vijayakumar, chief investment strategist at Geojit Investment, said, unfortunately, the war is escalating with US President Trump giving an ultimatum to Iran to open the Strait of Hormuz in 48 hours. The Iranian president’s response that “the Strait of Hormuz is open to all except those who violate our soil” has prevented panic in the oil market. However, the uncertainty is huge, and markets will be waiting and watching the outcome. 

 

"It is important to understand that the huge risk-off globally has impacted all assets, including stocks, bonds and precious metals like gold and silver. In fact, the crash in the safe-haven gold is worse than in equities," he added. 

Top Midcap Index losers:

On the Nifty Midcap 100, Muthoot Finance stock was the top loser, nearly 7 per cent at ₹3,097 per cent. Among others, Voltas, NMDC, L&T Finance, Bharat Dynamics, Steel Authority of India, KEI Industries, Hindustan Petroleum, and Paytm plunged over 5 per cent each. Out of 100 constituents, 98 stocks were trading in the red. 

Top Smallcap index losers

In the Nifty Smallcap 100 basket, Brainbees Solutions (Firstcry) was the top loser, falling more than 7 per cent to ₹230. Among other Smallcap names, Kajaria Ceramics, Bandhan Bank, Whirlpool, Tejas Networks, BEML, Jindal Saw, Hindustan Copper, IIFL, and PCBL Chemical declined over 5 per cent each. Out of 100 constituents, 99 stocks were trading in the red. 

 

Ponmudi R, chief executive officer at Enrich Money, said the markets are likely to remain under pressure, either consolidating at lower levels or extending downside following last week’s intense volatility. Early trade indicates heavy selling in PSU banks, metals, and consumer durable stocks, with declines exceeding 4 per cent, signalling broad-based risk-off sentiment across sectors.

 

"Global cues remain decisively negative, with sharp declines across Asian markets reinforcing the prevailing risk-off sentiment. Overall, the market has clearly entered an event-driven phase, where sentiment is largely dictated by crude oil prices, geopolitical developments, currency movements, and FII flows. Unless there is visible de-escalation or a meaningful correction in crude prices, markets are likely to remain under pressure, with elevated volatility and downside risks in the near term," he added.