Midcaps, smallcaps, microcaps plunge up to 20%. BHEL, HUDCO among top losers

In the 100 index, 97 counters were trading in the red around this time with just three stocks managing a positive trade. The gainers were , and IPCA Laboratories which saw upward movement to the tune of 2% while state-run (BHEL), and were rankled by up to 16%.

On Monday, the Nifty Midcap 100 had hit a 52-week high of 53,705.30.

As for the index, the intraday crash was by 7% or 1,300 points to the day's low of 15,801.80. It was a complete U-turn from Monday's gains where the 100-stock index scaled a new 52-week peak of 17,424.15. Blue Star was the lone gainer while the other 99 were in the red. The worst losers were Titagarh Garh Rail Systems, HUDCO and Hindustan Copper which plunged up to 17%.

Microcaps were also at the receiving end of investor's ire with 247 stocks floating in the sea of red in the . DB Realty, Mishra Dhatu Nigam, MOIL, Shipping Corporation of India (SCI), TARC, PTC were among the biggest losers.

Small & midcap (SMIDs) stocks have witnessed an overwhelming uptick in the last 10 years of the with over 670 stocks listed on the BSE turning multibaggers. However, this rally may not be secular in 3.0, with sector-specific traction taking precedence and the path could be laden with volatility, experts tell .

According to data, 78 stocks in the midcap space have delivered multibagger returns with the highest rise witnessed in Uno Minda over the span of 10 years. Its returns are nearly 13,000% between May 16, 2014 and May 31, 2024 with stock closing at Rs 877.50 on the BSE on Monday.

Other major stocks that have topped the charts include Trent (4566%), Patanjali Foods (3766.80%), Solar Industries India (3695.92%), Deepak Nitrite (3458.84%), Tata Elxsi (2771.82%), TVS Motor Company (1778.28%). Among the state-run stocks are SJVN, Hindustan Petroleum Corporation (HPCL), NHPC, REC, Power Finance Corporation (PFC), Steel Authority of India (SAIL) which have given between 517% and 101% returns.

There are 11 midcap stocks which have given double digit returns in this period viz. Bharat Heavy Electricals (BHEL), ACC, Canara Bank, IDBI Bank, Indian Oversea Bank (BHEL) and NMDC at 95%-2%.

These are returns over the last 10 years and may differ from the returns in other timeframes. For instance stocks like BHEL, Canara Bank, IOB etc have given returns in excess of 100% in the last one year.

, Goldilocks Premium Research, told ETNow that he does not think that at current levels, one could make commitments in defence, railway and PSU stocks as all the positives are getting priced in and this could just be a blowout rally which might not continue for too long.

He prefers large caps over the next 3-6 months which in his view are fairly valued with Nifty at 23,000.

Technical View

Analyst mentions a growing preference for large cap stocks over SMIDs though chart structure shows an overall strong trend, continuing to form higher tops and higher bottoms on larger time frames, such as the weekly and monthly charts. "The uptrend in NIfty Midcap 100 and 100 is expected to persist as long as this pattern of higher tops and higher bottoms continues. Also, they are trading above its short and long-term moving averages," Shah commented.

The Deputy Vice President & Head of Technical and Derivative Research Desk at SBI Securities also sees support from momentum indicators and oscillators.

"Going ahead, we believe, Nifty Midcap is likely to continue its northward journey in the next couple of months and test the level of 55,000, followed by 58,000 zones. While, on the downside, the zone of 45,200-45,000 will act as immediate support for the index," Shah said.

As for the Nifty Smallcap 100, the zone of 14,500-14,400 will act as crucial support and as long as it is trading above this level, it is likely to continue its upward rally and test the level of 18,500 followed by 20,000 in the next couple of months, Shah opined.

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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)