IREDA, SJVN, IRFC, IFCI, KEC: Midcap, smallcap shares fall big amid stock market selloff

Castrol Ltd, SJVN Ltd, IREDA, Max Health, Mahindra & Mahindra Financial Ltd (M&M Financial), Torrent Pharma Ltd and Indian Overseas Bank Ltd were some of the midcap stocks that were hit the most amid the stock market selloff in Monday's trade. On the other hand, IFCI, Jindal World, KEC International, NBCC and SpiceJet were some smallcap shaes that were hit hard during today's session. The midcap and smallcap indices fell over 1.5 per cent against 1.1 per cent drop in the BSE benchmark Sensex.

Analysts said broader markets are trading at expensive valuations vis-à-vis largecap indices. The NSE Midcap 100 index in fact traded at 46 per cent premium to Nifty at last count. Overall, largecap indices Sensex/Nifty, are trading at a 12-month forward PE ratio of 19.4 times, which is largely in line with its long-period average (LPA) of 20.3 times.

Among smallcap stocks, IFCI plunged 6.78 per cent to Rs 42.10. Indraprastha Medical Corp fell 6.60 per cent to Rs 224.30. Pitti Engineering declined 6.41 per cent to Rs 798.10. Jindal World, Sasken, Steel Exchange India, KEC International Ltd and SpiceJet Ltd fell over 5 per cent each.

"The major casualties were the mid- and small-cap indices due to their rich valuation and expectation of moderation in earnings growth in Q4FY24," said Vinod Nair, Head of Research, Geojit Financial Services.

Suman Bannerjee, CIO at Hedonova said the escalating geopolitical tensions in West Asia prompted a 2-3 per cent falls in several small and midcap stocks. "Given these developments, it is advisable for investors to closely monitor geopolitical events and their potential impact on global markets as trading resumes."

Among midcap stocks, Castrol India shares fell 5.57 per cent to Rs 210.95. IREDA declined 5.32 per cent to Rs 158.30. PSU stock SJVN slipped 4.25 per cent to Rs 832.50. M&M Financial, Max Healthcare, IOB, NHPC, Torrent Pharma, GMR Infra, IRFC, LTTS and Bank of India fell over 3 per cent each.