India Post Daily
Buisness

7.8% decline in small cap stocks since their peak

<p>The regulator’s concerns about foam accumulation have caused small cap stocks to keep falling.</p>
<p><img decoding=”async” class=”alignnone wp-image-500260″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-7-8-decline-in-small-cap-stocks-since-their-peak-img-6302-750×500.png” alt=”theindiaprint.com 7 8 decline in small cap stocks since their peak img 6302″ width=”967″ height=”646″ title=”7.8% decline in small cap stocks since their peak 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-7-8-decline-in-small-cap-stocks-since-their-peak-img-6302-750×500.png 750w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-7-8-decline-in-small-cap-stocks-since-their-peak-img-6302-1024×683.png 1024w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-7-8-decline-in-small-cap-stocks-since-their-peak-img-6302-768×512.png 768w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-7-8-decline-in-small-cap-stocks-since-their-peak-img-6302.png 1200w” sizes=”(max-width: 967px) 100vw, 967px” /></p>
<p>On Tuesday, the benchmark Sensex is up 0.31 percent, while the BSE Small Cap index is down over 2 percent.</p>
<p>V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, notes that redemptions from small-cap funds might increase the negative.</p>
<p>He said that regulatory measures are expected moving ahead due to the regulator SEBI’s strong message over the bubbly valuations in the small cap market.</p>
<p>The downturn in the overall market, especially the small caps, is now the main near-term trend in the market. According to him, the small cap index has dropped 7.8% from its top, and given the values are still high, this correction is probably going to continue.</p>
<p>After a downturn, high-quality big caps will rise again, while tiny caps are unlikely to rise quickly. According to him, PSU equities that have risen too quickly may potentially come under pressure to be sold.</p>
<p>Following the largest decline in iron ore since 2022, shares of Asian steel-related firms fell, according to Deepak Jasani, Head of Retail Research at HDFC Securities. After closing at $135.31 per tonne at the end of 2023, benchmark futures prices have already dropped by 20%. The benchmark interest rate of the central bank of Argentina was abruptly lowered from 100% to 80%. Due to inflows into US exchange-traded funds, Bitcoin rose for a sixth day and broke beyond $72,000 for the first time, according to him.</p>
<p>After cautious Wall Street trading, Asian stocks were mixed as investors anticipated US inflation data that might affect when the Federal Reserve shifts to monetary easing, he said.</p>
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