Smallcap Stocks Slide Up to 3% as Nifty Smallcap 100 Extends Losses for 5th Session
Smallcap stocks dropped up to 3% on August 28 as Nifty Smallcap 100 fell for the fifth session. Brainbees, Inox Wind, Adani Total Gas among top losers.
Nifty Smallcap 100 index extended losses for the fifth straight session as smallcap and midcap stocks tumbled after US tariff impact.
Smallcap stocks came under heavy pressure on Thursday (August 28), with the Nifty Smallcap 100 index falling over 1% in early trade to 17,325, marking its fifth straight session of losses. The decline followed the impact of US President Donald Trump’s 50% tariff on Indian goods, which came into effect on August 27.
Market Overview
By 10 am, the Nifty Smallcap 100 had pared some losses, hovering around 17,466, down 0.5%. The Midcap index also slipped 0.6%, extending its losing streak for the second day. Meanwhile, India VIX, the volatility index, jumped over 4%, reflecting growing investor nervousness.
The market downturn was largely triggered by fresh US tariffs. With stock exchanges closed on August 27 for Ganesh Chaturthi, the reaction was seen today.
Top Smallcap Losers
- Brainbees Solutions (FirstCry-parent): down nearly 3% to ₹365
- Inox Wind, PG Electroplast, IndiaMART, Five-Star Business Finance, CreditAccess Grameen: down ~2% each
- IGII, Titagarh Rail Systems, IDBI Bank, PVR Inox: fell ~1.5% each
- Kaynes Tech, MCX, Sagility India, RITES, KEC International, Angel One, Radico Khaitan, Data Patterns, GRSE: slipped over 1%
- IIFL Finance, RailTel, CAMS, IRCON, and others: down nearly 1%
Top Midcap Losers
- Adani Total Gas (ATG): dropped nearly 4% to ₹610
- IRB Infrastructure, Bharti Hexacom, Max Healthcare: fell over 2% each
- SJVN, Vodafone Idea, Page Industries, Aurobindo Pharma, Prestige Estates, BDL, Cochin Shipyard, Torrent Pharma, Astral, Solar Industries, GMR Airports, Mazagon Dock, Colgate Palmolive, Tata Tech, Hindustan Zinc: all declined more than 1%
Expert Take
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the sharp tariffs will weigh on market sentiment in the near term, but panic selling is unlikely:
“The real challenge before the market is high valuations and weak earnings growth. However, aggressive domestic institutional investor (DII) buying will balance out any foreign investor selling.”
He further advised investors to shift focus from overvalued smallcaps to safer largecaps, particularly in domestic consumption-driven sectors.
