This week, the stock market, especially smaller companies, faced a serious drop. The BSE Smallcap 100 index fell by 9.5%. Many investors were worried about Donald Trump’s plans for new tariffs, which would impact trade, and disappointing earnings reports from many companies.
Out of 938 stocks in the BSE Smallcap index, a shocking 909 saw their prices go down. The biggest loser was NGL Fine-Chem, which dropped by 41% and ended the week at Rs 1,091. Other companies like Natco Pharma and Concord Biotech also fell significantly, ranging from 3% to 33%.
Even companies that did perform well, like Capacit’e Infraprojects and KNR Construction, saw their stock prices drop despite reporting good earnings.
There were a few winners amid this turmoil; 29 small-cap stocks ended the week positively. Leaders like Garware Hi-Tech Films, Kennametal India, and Godfrey Phillips India saw increases of 15%, 12%, and 9% respectively.
The selling trend by Foreign Institutional Investors (FIIs), who sold shares worth Rs 14,152 crore this week, also contributed to the downturn. However, Domestic Institutional Investors (DIIs) bought shares worth Rs 18,745 crore.
SBI Securities advised investors to focus on strong, quality companies for the long run.
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