Little stocks in big trouble! 374 smallcaps fall at least 30% from peak. Worst ahead?
smallcap stocks are now in bear territory with losses going as high as 84% from 52-week high levels. Some of the biggest victims of the bloodbath, which accelerated after Sebi compared the smallcap boom to irrational exuberance, are high-flying multibaggers.
While the Nifty Smallcap100 index is down 14% from peak, at least 756 smallcap stocks have fallen more than 20% from recent highs. Out of them 374 stocks are down at least 30% from peak while 18 of them have crashed at least 50%, shows data from ACE Equity.
Some of the worst losers are Ramky Infrastructure (down 56% from peak), Andrew Yule (down 48%), IFCI (47%), PTC India Financial Services (47%), AGS Transact Technologies (46%), Swan Energy (40%), Railtel (37%) and RVNL (36%).
The bloodbath has been much deeper in the SME world where more than 90 stocks have lost at least 20% in just one week. Worst losers in the SME pack include Pritika Engineering Components, Cellecor Gadgets, Zenith Drugs, Rachana Infrastructure, Alpex Solar, Knowledge Marine & Engineering Works and Droneacharya Aerial Innovations.
Market experts have been warning investors about the risk arising from the inclination to chase momentum and speculative stocks rather than invest sensibly in a well-balanced portfolio.
The smallcap crash started in February-end when Sebi told mutual funds to establish a framework to protect small and midcap investors from froth building up in the market.
«If you want to protect the investors, they (Sebi and AMFI) are saying please moderate the inflows if
