Nearly 500 smallcap stocks lose 10-92% in February as market ends 3% lower

Nearly 500 smallcap stocks lose 10-92% in February as market ends 3% lower

Broader indices has underperformed the main indices with BSE Midcap and Smallcap indices fell 5 percent and 8.7 percent, respectively.



Indian markets saw extreme volatility in February and fell 3 percent as global as well as domestic factors such as the Union Budget and the Russia-Ukraine crisis weighed heavy.

"The structure of the index has turned negative and has been giving signs since the last many trading sessions with the downward sloping trendline acting as good resistance," said Harsh Parekh, Technical Analyst, Bonanza Portfolio.

The month started on a high note with a growth-oriented Budget presented on February 1 but the market immediately came under pressure amid weak PMI data, rising bond yields and crude oil prices.

For the next two weeks—February 7-18—the market continued to be volatile and ended lower amid outcome of RBI policy, possibility of a faster-than-expected rate hike by the Federal Reserve, escalating tensions between Russia and Ukraine and relentless selling by foreign institutional investors (FIIs).

In the last week of February, the market extended the losing streak as Russia invaded Ukraine on February 24, leading to extreme volatility in market.

Indian shares saw the biggest single-day fall on February 24 but witnessed a smart pullback the next day