The broader markets saw significant losses in the week ending October 25, as over 300 small-cap stocks fell by 10-32%. The underperformance stemmed from weak Q2 earnings, sector-wide selling, foreign institutional investor (FII) outflows, and mixed global market signals ahead of the US presidential election. Key indices, BSE Sensex and Nifty50, dropped by 2.24% and 2.7%, respectively, while broader indices like BSE Mid-cap and Small-cap saw steeper declines of 5.2% and 7.3%.
Sectorally, the Nifty Media, Metal and Realty indices fell 7% each, while Oil & Gas, PSU Banks and Auto indices lost between 5-6% each. The severe FII selling persisted as Rs 20024.27 crore were pulled out from Indian equities during the week; however, during the same week, domestic institutional investors bought equities worth Rs 22,914.63 crore.
All in all, the FII outflows topped Rs 1 lakh crore in October, which booked a monthly loss of around 6% for the benchmarks. “The sharp correction this week can be attributed to relentless FII selling and pressure on midcap and smallcap stocks as they underperformed their larger peers, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
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Source: Moneycontrol
News Desk
