The BSE Smallcap Index drops more than 2% during Monday’s trading. The fall in index value came after US President Donald Trump announced plans to impose a blanket tariff of 25% on steel and aluminium imports. Here are 4 things to note-
How much has index fallen?
The BSE Smallcap Index has fallen 1,065.97 points in Monday’s trade to as low as 49,098.25. The index is down almost 15% from its recent peak.
The Index, launched in 2005, represents 15% of the total market capital of the BSE. The index is designed to represent the small-cap segment of India’s stock market.
On the financial front, the index fetches a price to equity (PE) of 30x times and a price to book (PB) value of 3.48.
Stocks with maximum cut
The share price of Fortis Healthcare, Bluestar Company, Kfin Technologies, Wockhardt Pharma, and Jyoti CNC Automation saw deep cuts, contributing the most to the fall in the value of the BSE Smallcap Index.
The stock of NGL Fine-Chem was the significant laggard in the BSE Smallcap index, down 20%. Followed by Banco Products India which was down 19%, Excel India 16%, TI 15%, Om Infra 12.22%, and so on.
BSE Smallcap: Key reason behind the fall
US President Donald Trump announced that on Monday the United States will impose 25% import tariffs on steel and aluminium. This will be applicable upon the additional metal duties– expected to be disclosed later in the week.
On Sunday while he was on his way to the NFL Super Bowl in New Orleans, Trump also said he would announce reciprocal tariffs as early as Tuesday, which would take effect almost immediately, reported Reuters.
Tracking movement of BSE Smallcap
The index has fallen 1.33% in the last five trading sessions. It has wiped out 6.8% in the previous one month and 8.8% in the last six months. However, the index has given a return of more than 11% in the last one year.
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