Market dips slightly, SEBI implements measures to curb small cap overvaluation

Arushi Mishra Updated - March 11, 2024 at 10:11 AM.
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The NSE Nifty was down by 0.05 per cent or 10.25 points at 22,481.25, while the BSE Sensex was at 74,033.34 down by 0.13 per cent or 96.9 points.

A total of 3,406 stocks were actively traded, 1,328 advanced, while 1,926 declined and 152 stocks remained unchanged where 100 stocks hit a 52-week high and 46 stocks hit a 52-week low at 10 am on Monday.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said: “The dominant trend in the market in the near-term is likely to be the underperformance of the broader market, particularly the small cap space.

Since restraints imposed by some mutual funds by stopping lumpsum investments in their small cap schemes has failed to stem the flow of funds into the over-valued small-cap segment, SEBI has stepped in with regulatory action, asking the mutual funds to do stress tests in their mid and small cap schemes.

More follow-up actions are likely from the regulator to prevent a bubble formation in the broader market and its inevitable burst. Since the market is scaling new highs consistently, the undertone of the market remains bullish and, therefore, investors should remain invested. Large caps are likely to witness buying on dips, while the broader market will face headwinds.”

Major gainers on the NSE at 9.30 am include, BPCL (1.21%), Cipla (1.09%), Ultratech (1.06%), Bajaj Finserv (0.87%), Hero Motocorp (0.80%). Major losers include, Tata Consumers (-3.06%), Tata Steel (-1.59%), Bajaj Auto (-1.07%), Tech Mahindra (-0.73%), HDFC Bank(-0.68%).

BSE smallcap was down by 0.50 per cent and Midcap up by 0.52 per cent.

Published on March 11, 2024 04:40

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