Mumbai, March 11 (IANS) The Nifty faced profit booking amidst weak global cues and SEBI warnings over a midcap-smallcap rally on Monday, closing near the day’s low with a loss of 161 points at 22,333 levels. Smallcaps bore the brunt, down 2 per cent.
SEBI’s caution about irrational run-ups and expensive valuations in small and midcaps dented domestic sentiments. Stress test disclosures for small and midcap funds on March 15 are expected to maintain pressure on the broader market in the near term.
Head of Retail Research at Motilal Oswal Financial Services, Siddhartha Khemka, advised moving to largecaps for a more favorable risk-reward ratio amid the expected market consolidation. All sectors, except healthcare, ended in the red on Monday as caution prevailed ahead of key inflation data from India and the US.
Nifty ended lower on Monday, continuing its downward trend from the opening with intermittent bounces, according to Deepak Jasani, Head of Retail Research at HDFC Securities. Cash market volumes on the NSE dipped below Rs 1 lakh cr, with the smallcap index falling more than the Nifty.
European stock markets followed the trend on Monday, tracking losses in Asia post-Friday’s weakness on Wall Street. Traders locked in profits amid growing uncertainty over US interest rates, especially in the technology sector.
The warning from SEBI and weak global cues led to profit booking in the Indian markets on Monday, with smallcaps seeing significant losses. The impending stress test disclosures for small and midcap funds further added to the cautious sentiment, leading to a red close for all sectors except healthcare.
