Stock market today: After a strong rebound on Friday's session, Indian stock market once again slipped into the red territory during Monday deals. All major indices are trading red but small-cap and mid-cap indices lost more than the key benchmark indices. The small-cap index received maximum beating as the index lost over 1000 points during the intraday trade.
The small-cap index today opened lower and went on to touch an intraday low of ₹44,476 which is around 1175 points lower from its Friday close of 45,650 mark. According to stock market experts, small-cap stocks were trading at much higher valuations against their fair price and profit-booking was overdue in the segment. apart from this, profit-booking getting more dip in PSU, banking, defense, power, and railway stocks further pulled down the small-cap index.
The execution would be the key parameter for small-cap and mid-cap space and a slight dip in their earnings may further further actuate market investors to offload their shareholding in mid and small-cap space. Also Read: BSE PSU index sinks 4%. Is the party over for these stocks? On why stock market investors are punishing small-cap stocks severely, Manish Chowdhury, Head of Research at BP Equities said, "There has a been a correction in the mid and small-cap space as valuations looked stretched in select pockets.Read more on livemint.com