The shares of several smallcap and midcap companies dropped sharply on July 1, pushing the broader market indices into the red to snap a seven-day gaining streak. The smallcap and midcap indices are currently underperforming the benchmarks, after several consecutive sessions of outperforming them.
The Nifty Smallcap and Nifty Midcap indices dropped around 0.3 percent each to hover around 19,009 and 59,544 respectively in the afternoon. Notably, the broader market indices had seen significant surge in the recent days, with the market capitalization of the BSE Midcap index and BSE Smallcap index surging by a whopping Rs 2.45 lakh crore and Rs 3.41 lakh crore respectively in just seven sessions.
The sharp fall may come as investors resort to profit booking at elevated levels.
Top midcap losers:
Dixon Tech and NMDC shares were the top losers on the midcap index, dropping over 3 percent. Bharti Hexacom, Bharat Forge and Ola Electric Mobility shares tumbled nearly 3 percent each, while SBI Cards, Alkem Laboratories, Page Industries, Solar Industries and Mankind Pharma shares declined over 2 percent each.
