Sensex Falls 200 Points But Investors Gain ₹2.5 Lakh Crore as Smallcap Stocks Rally
The Markets Bounced Back Despite Sensex Slipping 200 Points as Investors Captured ₹2.5 Lakh Crore from Smallcap Stocks.
Stock Market Today (May 16): A fall in the Sensex and Nifty didn’t stop investors from gaining wealth thanks to the rally in small and midcap stocks. The Sensex fell nearly 200 points, yet the broader market saw gains. Smallcaps and midcaps drove the growth in investor wealth as the total market accumulated ₹2.55 lakh crores in one day.
we’ll explain how certain sectors performed well in today’s stock market.
Drops in IT Sector Stocks Take Down the Sensex and Nifty at Their Close
Sales on Friday pushed down the index largely due to declines in information technology companies. The Sensex finished down by 200.15 points at its close of 82,330.59, a decrease of 0.24%. Meanwhile, the Nifty 50 retreated by 0.45% to 25,057.25.
The large-cap stocks showed a dip while the small-cap and mid-cap categories continued to surpass RSI values of 70 for the fifth straight day.
Shares of Small and Mid Cap Companies Deliver Outsized Returns
Smallcap and midcap stocks continued to outperform even as the broader markets went downwards. Smallcap and midcap stocks rose by over 1% and 0.85% respectively. This rise can mainly be attributed to significant investor interest in sectors such as:
- Defence
- Railways
- Real Estate
- Power
- Capital Goods
- Utilities
Therefore, we witnessed an impressive boost to the total market value.
Market capitalization growth on Monday contributed to investors earning ₹2.55 lakh crore
The total market cap of listed companies on the BSE surged past ₹442.74 lakh crore on May 16 from ₹440.19 lakh crore a day earlier. As a result, investor wealth increased by more than ₹2.55 lakh crore on Tuesday, even though the BSE Sensex and NSE Nifty indices fell slightly.
This increase suggests the market was thriving with participation from other industry groups in spite of weaker performance of the technology and financial sectors.
The Sensex witnessed these 5 stocks performance significantly better than the average
A majority of Sensex stocks ended higher on Wednesday. The Sensex’s top 5 gainers for the day are listed here.
- Eternal – rose by 1.38%
- HUL shares -rose by 1.10%
- Asian Paints – gained 0.72%
- ITC – increased by 0.62%
- Tata Motors – up by 0.36%
These companies cushioned the losses in the Sensex and attracted support from investors amid prevailing market uncertainty.
The biggest declines in the Sensex were seen among 5 companies
However 14 stocks in the Sensex tumbled. Most of the declines occurred in telecom and IT stocks. The top 5 losing stocks were:
- Bharti Airtel – dropped 2.81%
- HCL Technologies – down by 2.14%
- The State Bank of India (SBI) saw its stock go down by 1.08%.
- Infosys – declined 0.95%
- Tech Mahindra – slipped 0.79%
Weak demand in the IT and banking industries has caused these companies to come under selling pressure.
Stock Market Breadth Was Strong
Market sentiment on the BSE showed widespread participation across stocks. Among the 4,126 companies active on the market that day:
- 2,616 stocks closed higher
- 1,370 stocks declined
- 140 stocks remained unchanged
Meanwhile, 83 stocks set a fresh 52-week high while 27 stocks clinched their lowest prices in a year, highlighting positive interest among investors across different sectors.
What This Means for Investors
Despite a decline in the Sensex and Nifty, there were positive indicators present across various sectors and segments of the market today. The rise of small- and mid-sized companies as well as sector-focused buying in defence, real estate, power and capital goods, is giving bullish momentum to the market.
The performance of the smallcaps and midcaps shows there are ongoing opportunities to invest despite large cap indices struggling. Investors with a well-diversified portfolio should fare well in unstable market environments.
Disclaimer
The aim of this blog is to share general financial information and learning resources. Investments in the stock market involve potential risks. Make sure to consult your financial advisor before making investment decisions. We aren’t advising our readers to invest in any of the stocks discussed within this article.
