Small cap stocks come under selling pressure

by IANS |

New Delhi, Nov 22 (IANS) Selling is being witnessed in small cap stocks with the indices falling more than the benchmark indices on Wednesday.

BSE Small Cap Select Index is down 1 per cent in trade. Among the constituents of the index, Sonata Software is down 5 per cent, Suzlon is down 5 per cent, KPIT Tech is down more than 4 per cent, JSL is down more than 4 per cent, Fortis is down 2 per cent.

BSE Small Cap Index is also down 0.33 per cent. Apollo Micro Systems is down 5 per cent, Orient Green Power is down 5 per cent, Patel Engineering is down more than 4 per cent, Rattan India Power is down 5 per cent, SEPC is down 5 per cent, Jindal Saw is down more than 4 per cent.

BSE 250 Small Cap Index is down 0.49 per cent. Motilal Oswal Financial Services is down more than 4 per cent, Raymond is down 4 per cent.

Small cap indices have been the best performers in the recent stock market much ahead of the benchmark indices.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said an important market technique is that the daily market range is getting narrower. This may preclude sharp moves in the market.

Today the focus of the market will be on the opening of the four IPOs. Lot of money is likely to go into the high quality Tata Technology IPO.

Investors can continue to accumulate high quality large-caps, particularly in banking and autos where the margin of safety is high.