Stock Break: Analyzing Stocks Below Rs. 100 with Notable Declines

In the ever-evolving world of financial markets, investors continually seek opportunities that offer both potential for profit and affordability. The allure of stocks trading below Rs. 100 is undeniable, especially when they experience significant price fluctuations.

Today, we delve into the intriguing realm of these affordable equities, specifically focusing on those within the market capitalization range of Rs. 500 crore to Rs. 20,000 crore, and examine the reasons behind their notable declines.

Market Analysis: Small-Cap and Mid-Cap Stocks Face Turbulence 

In the stock market, it was a turbulent day, especially for small-cap and mid-cap stocks. The small-cap index experienced a sharp drop of nearly 1.45% in Wednesday’s trading session. Notably, small-cap stocks have shed around 2,330 points over the course of this week, while the mid-cap index also witnessed a correction, losing approximately 1,240 points during the same period.

Financial experts suggest that today’s Indian stock market activity was influenced by various factors. The buying interest seen earlier was partially due to a retracement in the 10-year US Treasury yield, which had recently hit 16-year highs, falling back below the 5% mark. However, the US bond market quickly reversed course, with the 10-year US Treasury yield surging once again, approaching the 5% level.

Other significant factors contributing to the stock market’s decline included geopolitical tensions like the Israel-Hamas conflict, a strong US dollar, foreign institutional investors (FIIs) selling off assets, disappointing Q2 2023 results, and mounting concerns over rising inflation. These complex dynamics converged to drive the Indian stock market into the red today.

Market Recap – Notable Declines (Top 10) 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.