BSE Midcap plunges 2.5% in its biggest fall since early May

MUMBAI: Traders and investors unwound leveraged positions in shares of mid and small-cap companies, causing their indices to fall sharper than the bluechips on Wednesday. BSE Midcap index, which outperformed the Sensex for the past 15 trading sessions, fell 2.5 per cent on Wednesday , its biggest single day fall since May 7.

Stocks such as Bombay Dyeing, Punj Llyod, Cox & Kings, JP Power, HCL Infosystems, & JK Tyre, among oth ers declined about 10-15 per cent in the past four trading sessions. These stocks surged between 15 per cent and 40 per cent in the past one month through last Thursday.

Brokers said further selling in midand small-cap stocks could trigger margin calls in this segment. “Stocks in mid and small-cap space have outperformed the broader market for the past few weeks and the correction was expected in these counters,“ said Navneet Munot, CIO, SBI Funds Management.