Mid- And Small-Cap Stocks Lead The Fall
The NSE Nifty 50 Index, which hit a lifetime high on Jan. 29, has since fallen more than 7 percent, led by a steep decline in small- and mid-cap stocks.
The Nifty Midcap 100 and Smallcap 100 Indices declined 11.5 percent and 14.6 percent, respectively, during the period. Most stocks were overvalued and were trading at a significant premium to their long-term book values, Nilesh Shah, managing director, Kotak Mahindra Asset Management Company, told BloombergQuint.
Information technology stocks largely weathered the storm, declining only 2.2 percent, while utilities led the laggards with a 12.3 percent fall, according to data compiled by BloombergQuint.
India’s largest lender State Bank of India fell the most at 15.6 percent, followed by other private sector peers.
Punjab National Bank, hit by a Rs 12,700-crore fraud, lost more than 40 percent in its market. Vakrangee lost nearly two-thirds of its value.