Latest news with #NiftyMid-cap150
Time of India
2 days ago
- Business
- Time of India
D St Remains Red as Co Valuations Trip on Earnings
Live Events Indian equity indices declined on Monday for the third straight session as disappointing first-quarter earnings cast doubt on the market's elevated valuations. The slide in the broader market was sharper, with investors trimming their risky bets amid heightening NSE Nifty fell 0.6% or 156 points to finish at 24,680. The BSE Sensex moved 0.7% or 572.07 points lower at 80,891. The Nifty Mid-cap 150 and Small-cap 250 indices dropped 0.9% and 1.3% the past week, the benchmark index shed 1.6% while the mid-cap and small-cap indices shed 3.1% and 4.1% each.'The market has been factoring in higher growth expectations into mid-cap and small-cap stocks,' said Siddarth Bhamre, Head of Research, Asit C Mehta Intermediates. 'So if these companies report lower growth numbers in the earnings, the selloff is that much more pronounced because the higher growth led these stocks to command a higher valuation multiple.'Bhamre said that expectations of 25-30% growth from these companies imply a valuation of 40-50 times, which is significantly higher than the rest of the Nifty Realty Index tumbled 4.1% while the metal index closed 1.2% lower. Bank Nifty fell 0.8% while the private bank and PSU Bank indices dropped 1.7% and 1.2% Volatility Index or VIX—the market's fear gauge—gained 7% to 12.1 on Monday, indicating traders expect higher risks in the near of the 4299 stocks traded on the BSE, 2951 declined, while 1,200 advanced, underscoring the weakness in the broader market'Despite opening higher, the mid and smallcap segment saw a fall today driven by bearish sentiment as the benchmark Nifty remained below key level of 24,800,' said Vipin Kumar, AVP Equity Research & PMS (Derivatives & Technical Analyst), Globe Capital MarketForeign portfolio investors (FPIs) sold shares worth a net of Rs 6,082.5 crore on Monday. Their domestic counterparts bought shares worth Rs 6,764.6 crore. In July, overseas investors divested Rs 27,822.9 crore.'The probability of disappointment is higher in the market rather than making money in the current set-up,' said Bhamre. 'We are not gung-ho on the market at least until December this year as the potential for decent upside is unlikely.'Kumar said that 24,000-24,400 is a key support level with some value buying likely to emerge at 24,000 levels, but markets are likely to be in a short-term downtrend.'A bounce back is likely towards 24,900-25,000 levels in the near term as the markets are oversold in the short term. However, it is expected to be a selling opportunity as we are in a 'sell on rise' market,' said Kumar.
Time of India
2 days ago
- Business
- Time of India
Market breadth narrows: 60% of NSE 500 stocks still 20% below 2024 highs; analysts flag overvaluation, weak earnings outlook
While benchmark indices like the Nifty 50 and Nifty 500 have rebounded and now sit 5–6% below their September 2024 record highs, a majority of the broader market continues to lag, with over 60% of NSE 500 stocks still trading more than 20% below their 2024 peaks, according to an ETIG study. The surge earlier in 2024 had lifted many stocks to lifetime highs, but since the September reversal of a four-year bull run, the rebound has been uneven. As per the analysis, 118 stocks in the Nifty 500 are 20–30% off their 2024 highs, 83 stocks are 30–40% below their peaks, and another 113 are trading more than 40% lower. In contrast, the Nifty 500 and Nifty 50 indices are 6.1% and 5.3% away from their respective highs. 'This points to a narrow market rally, often driven by specific sectors or large-cap names,' Sudeep Shah, vice president and head of technical and derivative research at SBI Securities, told ET. He noted that the broader mid- and small-cap segments remain sluggish despite the overall index recovery. Some of the worst-hit stocks include Jaiprakash Power Ventures, Network18 Media & Investments, Zee Entertainment Enterprises, Sammaan Capital, and Suzlon Energy, which are all down between 84% and 97% from their all-time highs. Others like Adani Total Gas, MMTC, Yes Bank, HFCL, and Vodafone Idea are also significantly off their peaks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo Only four stocks—Laurus Labs, Fortis Healthcare, Shyam Metalics & Energy, and Torrent Pharmaceuticals—are trading above their 2024 highs. Despite these declines, elevated valuations persist in many segments. 'Even a reasonably high growth company cannot be expected to deliver 35–40% growth to justify the valuations,' said Ashwini Shami, EVP and senior portfolio manager at OmniScience Capital. 'The overvaluation is not over in the small and midcap stocks and these stocks are not expected to go back to the previous highs as that momentum was driven primarily by euphoria,' he told ET. Between September 2024 and February 2025, the Nifty 500 declined 18.8%, while the Nifty Mid-cap 150 and Small-cap 250 indices dropped 20.6% and 25%, respectively. Over the past three months, mid-cap and small-cap indices have recovered 9.2% and 12%, respectively, with the Nifty 500 gaining 5.3%. Investors have turned selective amid concerns over corporate profitability and tariff-related uncertainty. 'Money is expected to flow to repriced pockets like the largecaps which are fairly priced, and within sectors, banks, housing finance companies, and financial services companies even in the mid and small-cap basket could offer investors a better bet,' said Shami. He added that infrastructure and power stocks also present opportunities, but investors must be cautious of elevated valuations. Shah pointed out that many midcaps and PSUs have surged more on sentiment, liquidity, and policy optimism than earnings. 'The valuations in some pockets have turned reasonable but are still trading at a premium to their historical averages in others, especially in sectors such as consumer durables, FMCG, and select midcap IT names,' he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
