SMID indices fall sharply

New Delhi: Small cap stock index plunged on Tuesday as valuation concerns are mounting. BSE Small Cap Index was down 2.54 per cent much more than the benchmark Sensex which was down .38 per cent. The mid cap index is down 1.75 per cent. The IPO index is down 2.5 per cent. The BSE 250 Small Cap index is down 2.6 per cent.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said another trend which has started is the underperformance of the small cap index. This trend also is likely to continue since small cap valuations continue to be excessive. Nifty is likely to consolidate at around the present levels. Dips will be brought since institutional buying has been strong.