More than half of the BSE 500 stocks retreated in August


AHMEDABAD: More than half of the stocks in the BSE 500 index have retreated in August on the back of various adverse reports. According to analysts, the adverse conditions have been created due to the pressure on small-midcap stocks.

According to market insiders, higher valuations of small-midcap stocks as well as other adverse reports, including Sebi's new margin rules, have led to a large-scale sell-off in the region's stocks, which has had a direct impact on stocks in the BSE 500 index.

The BSE Midcap Index is down around 1 per cent and the Smallcap Index is down 3 per cent due to continued selling during the month. On the other hand, the Sensex has risen 3% during this period.

These stocks rose sharply as a large number of new retail investors entered the market during the current year, taking on large-scale small-midcap stocks. According to experts, the number of new investors has doubled this year as compared to last year.

Big players and institutional players are moving away from the market due to unfavorable market environment. While new investors are investing in the market at this time. Which leads to massive erosion of their capital.

Under these circumstances, adversity in small-midcap stocks has increased in the current month amid widespread panic among retail investors. Funds are also likely to sell in these stocks in the near future.

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