Nifty 50 Falls 2,000 Points From Life-High As Small-, Mid-Caps Lead Decline
Nifty Auto and Nifty Realty were among the worst hit sectors, while Nifty IT remained largely flat over the period.
As Indian equities benchmark Nifty 50 recorded a 2,000-point fall from its life highs, the broader markets outpaced this decline, with the gauge for smallcap stocks falling 10%.
Benchmark Laggards
In terms of absolute returns, IndusInd Bank Ltd., Bajaj Auto Ltd., and Tata Consumer Products Ltd. were the top laggards among the Nifty 50, with all three disappointing street expectations with their second-quarter results.
Among the largest contributors to the benchmark's 2,000-point decline, Reliance Industries Ltd., ICICI Bank Ltd., and Mahindra & Mahindra Ltd. dragged the index by 500 points in total between them.
Broader Markets Outpace Large Caps
Benchmark indices for the mid and small cap stocks outpaced this decline, with the small-cap index falling the most.
Nifty Smallcap 250 fell 10% from its peak on Sept. 25, with PNC Infratech Ltd., Manappuram Finance Ltd., and Easy Trip Planners Ltd. declining the most among its index constituents.
Nifty Midcap 150 fell 9.5% from its highest point on Sept. 25, with the decline led by Vodafone Idea, IGL and Cochin Shipyard.
Sectoral Performance
Nifty Auto was the worst performing index as the markets recorded their decline from life-high levels, followed by Nifty Realty.
Notably, the two had been the top performing sectoral indices amid Indian equities' bull run over the last year.
On the other end, Nifty IT and Nifty Pharma are among the worst hit sectors as markets faced this decline in a month marked by the largest sell-off made by foreign investors.
The two sectors are also considered as a defensive play in markets.
