Small & midcaps tumble! Hindustan Copper, Devyani, PI Industries, other stocks fall up to 7%

The shares of several smallcap and midcap companies tumbled in trade on Wednesday, as broader markets lost steam and plunged along with the benchmark indices Sensex and Nifty, after the rupee crashed to a fresh all-time low, bond yields scaled multi-year highs, and other factors dampened investor sentiment.

The Nifty Midcap 100 and Nifty Smallcap 100 indices sharply declined around 1% each after markets opened on Wednesday. However, the benchmarks soon pared some losses, and broader markets followed. At 10.30 am, the Nifty Smallcap 100 index was down 0.8%, while the Nifty Midcap 100 index was down 0.5%.

Top midcap losers today

PI Industries shares were the top midcap losers on the index, tumbling nearly 7% after its Q4 results. Motilal Oswal highlighted that the company reported weak operating performance due to adverse operating leverage. While the company’s Rs 1,570 crore revenue was in line with estimates, the domestic brokerage noted that the firm’s EBITDA, margins, net profit and other metrics were lower than expectations.Adani Total Gas shares declined over 3%, while Rail Vikas Nigam (RVNL), Godfrey Phillips India, Coromandel International, Bharat Dynamics and AU Small Finance Bank shares dropped more than 2% each.

NMDC, HUDCO, Godrej Properties, M&M Finance, SAIL, L&T Finance, Kalyan Jewellers, Patanjali Foods and Prestige Estates shares followed, falling nearly 2% each.

Top smallcap losers today

Hindustan Copper shares plunged nearly 4%, leading losses on the Nifty Smallcap 100 index as well as the Nifty Metal index. The shares of the company have tumbled by over 7% in one week.Cholamandalam Financial Holdings and Cohance Lifesciences shares have fallen more than 3% each, while those of Karur Vysya Bank, Devyani International and Jyoti CNC Automation fell nearly 3% each.

The shares of IDBI Bank, Inox Wind, Poonawalla Fincorp, Chambal Fertilisers & Chemicals, Pine Labs, Amber Enterprises India, Crompton Greaves Consumer Electricals, PG Electroplast, The Ramco Cements, Star Health and Allied Insurance Company and JM Financial followed, dropping more than 2% each.

What lies ahead?

The smallcaps and midcaps have been outperforming their largecap peers recently, although the streak broke today. Vinod Nair, Head of Research at Geojit Investments, had said that the recent outperformance was driven by renewed buying interest after a meaningful correction.

“While fourth-quarter earnings continue to underscore the resilience of domestic economic momentum, market focus is increasingly pivoting towards mounting inflationary pressures. Concerns over potential earnings downgrades for Q1FY27 are gaining traction, driven by higher-than-anticipated WPI readings, the gradual pass-through of elevated fuel prices, and persistently firm bond yields,” he added.

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