Share Market Crash: Strong selling was seen in smallcap and midcap stocks on Monday 8 December. Due to all-round decline and profit-booking, many shares fell by up to 11%. Sensex and Nifty also crashed by about 1 percent during trading today. Due to this, the sentiment of the broader market weakened further.
Smallcap index fell for the fifth consecutive day
Nifty Smallcap-100 index fell more than 2% during trading today. This is the fifth consecutive day when this index is trading in the red. This index has fallen by more than 4% in the last five days.
Shares of Data Patterns (India) and Reliance Power were also among the top losers in Nifty Smallcap-100 index today. Shares of Data Patterns were trading down by around 6.6% and shares of Reliance Power were down by 6.3%. Apart from this, Aegis Vopack Terminal, Poonawala Fincorp, Aditya Birla Real Estate, Anant Raj, Deepak Fertilizers & Petrochemicals, and Ola Electric Mobility were also among the top losers and saw a fall of up to 6%.
Pressure on midcap shares also
Nifty Midcap-100 index also fell by about 2% during trading today. The biggest decline on this index was seen in the shares of Housing and Urban Development Corporation (HUDCO) and Godrej Properties, which fell by 6.3% during trading. Apart from this, shares like Bharat Dynamics, Steez Estates Projects, Vodafone Idea and Mahindra & Mahindra Financial Services also saw a decline of up to 6%.
Why is the stock market falling?
Market experts say that continuous selling by foreign investors has created an atmosphere of weakness in the stock market. Apart from this, investors seem to be avoiding risk even before the policy results of the US Federal Reserve on Wednesday. At around 1:35 pm, the Sensex was trading 802.91 points or 0.94 per cent lower at 84,909.45. Whereas Nifty was trading at the level of 25,917.40, falling 269.05 points or 1.03 percent.
Experts say that volatility in the broader market is likely to persist in the near term also. Especially in those stocks where profit booking is being seen after a sharp rally.
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