Sensex and Nifty50 continue downward slide on March 13, shedding early gains to hit day’s low near 22,100 level. Heavyweights Reliance and L&T drag down Sensex despite gains in ITC shares post block deal. Concerns over high valuations persist as broader market sees third consecutive session of decline, with BSE midcap down 2.6% and BSE smallcap down 3.6% by 11:45am. Sensex drops over 470 points (0.6%) and Nifty 50 nearly 200 points (0.9%) around noon. Out of 3,339 stocks traded, 404 advance, 2,891 decline, and 44 remain unchanged.
Rising valuations in mid and smallcap segments, fueled by retail investor frenzy, have been worrisome, notes V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He highlights SEBI’s intervention triggering a 10% correction in Nifty Smallcap index from February 8th peak, signaling ongoing concerns. Vijayakumar also points out that 396 stocks have hit lower circuit, suggesting further downside. Mutual fund actions indicate a shift towards largecaps, reflecting market dynamics.
