Nifty Midcap Index falls 10% from record highs; More than 50% stocks see double-digit losses

The Nifty Midcap Index has shed another 1,000 points in Friday’s trading session. This is the fourth instance in the month of October that the Midcap index has declined over 1,000 points in a single trading session. Add to that is the 985-point fall that the Midcap index had seen on October 17.

With Friday’s drop, the Nifty Midcap index has declined over 6,000 points from the record high levels of 60,924, which it had hit on September 24, which is exactly a month earlier.

Out of the 100 constituents on the Nifty Midcap index, 12 of them are trading with losses of 20% and more. Nearly half of the index or 46 stocks are trading with losses between 10% to 20%. 30 stocks are down between 1% to 10%, while only 12 stocks are positive since September 24, when the Midcap index had made a record high.

Among stocks that have declined over 20% from September 24, include Vodafone Idea, Indraprastha Gas, Cochin Shipyard, L&T Finance, Bank of Maharashtra, Supreme Industries, Rail Vikas Nigam and Suzlon.

CLSA chartist Laurence Balanco, in an interaction with CNBC-TV18 earlier this week, had mentioned that there is a high probability of the Nifty 50 testing levels of its 200-Day Moving Average, which is currently placed around levels of 23,300, which was a 1,000-point fall from the levels the index was when he first made those remarks. 

Among the sectoral indices, Balanco had highlighted that there was a high risks within the PSU space, where he had earlier flagged stocks like Coal India and Power Finance Corporation as stocks that have downside potential.

In an interaction with CNBC-TV18, Motilal Oswal’s Raamdeo Agrawal, who also is a market veteran, called this fall the ‘healthiest possible correction.’