RVNL To Yes Bank: Small-, Mid-Cap Stocks Rebound After Selloff
The selloff was bound to happen as markets do not follow only one trend, says market veteran Vijay Kedia.
Shares of Indian Railway Finance Corp., the Fertilisers and Chemicals Travancore Ltd., Yes Bank Ltd. and Rail Vikas Nigam Ltd. bounced back on Thursday following a selloff in the mid and small-cap space a day ago.
On Wednesday, the NSE Nifty Midcap 150 had taken a significant hit, plummeting over 4%, and the Smallcap 250 witnessed an even deeper decline of over 5%.
However, Thursday saw a turnaround, as the Midcap 150 rose 1.61% and the Smallcap 250 surged 2%. The S&P BSE MidCap saw a notable uptick, trading 1.74% higher at 38,234.15, while the BSE SmallCap was also trading over 3% higher.
The selloff was bound to happen as markets do not follow only one trend, according to market veteran Vijay Kedia. The correction is an "indication of the next bull market".
Selloff led by small and mid-caps is an "adjustment" that will continue but won't turn into a crash despite froth in certain segments, Kedia told NDTV Profit.
Among the Nifty Midcap 150 companies, shares of IRFC surged 11.63%, while those of The Fertilisers and Chemicals Travancore rose 10.35%.
Yes Bank and RVNL stock advanced 9.31% and 8.15%, respectively. This compares to a 1.25% advance in the Nifty Mid-Cap 150.
Shares of Prestige Estates Projects Ltd. and Godrej Properties Ltd. dipped over 3% and were among the worst performers in the index.
Among the Smallcap 250 stock, BLS International Services Ltd. jumped 19.08%, followed by SJVN Ltd., which rose 13.49%, and ITI Ltd., which advanced 13.22%.
Shares of Ircon International Ltd., Olectra Greentech Ltd. and IRB Infrastructure Developer Ltd. were up 12.47%, 11.02% and 10.05% respectively. This compared to a 2.49% advance in the Smallcap 250.
Tata Investment Corp. and Sterling & Wilson Renewable Energy Ltd. declined 5% and 4.53% respectively.
