Midcaps hammered in February, plunge up to 30%. IREDA, Delhivery among biggest losers

Synopsis

Midcap stocks faced heavy selling in February, dropping up to 30% as investors booked profits and cut losses. Global concerns, including Trump’s tariff threats and US slowdown fears, along with weak Q3FY25 earnings, weighed on sentiment. The BSE Midcap index plunged 10%, with 123 of 132 stocks ending in the red. Key losers included RVNL, Tube Investments, IREDA, and Mphasis.

Midcap stocks got hammered through February falling by as much as 30% as investors scurried to book profits or cut losses. The low-key sentiments on D-Street were on account of both the global and local factors. While Donald Trump's threats on reciprocal tariffs and fears of US economic slowdown weighed on the markets, nearly a third of the midcaps missing their Q3FY25 estimates and valuations were among local factors that pulled the pack.

The BSE Midcap index fell by 4,500 points or 10% in February and this week's decline was more prominent as the 132-stock index plunged 4.4% or nearly 1,800 points. In this, 123 stocks ended the month in the red while just 9 stocks managed a positive closing.

Ten socks that fell the most in February are Rail Vikas Nigam (RVNL), Tube Investments of India, Gujarat Gas, Indian Renewable Energy Development Agency (IREDA), Relaxo Footwears, Delhivery, The New India Assurance Company, Mphasis, Escorts Kubota and Deepak Nitrite. They reported a decline between 30% and 20%.

On a weekly basis, there were no gainers with the biggest declines seen in IREDA, New India Assurance, Mphasis, Oil India and L&T Technology Services which fell up to 12%.

While Trump's reciprocal tariffs have kept markets on the boil, the annualised growth rate of 2.3% by the world’s largest economy in the last quarter after accelerating at a 3.1% pace in the July-September quarter was not taken well by the markets. Prior to this, the country had also reported higher January consumer inflation numbers at 3%, much above the Federal Reserve's 2% target.

On the domestic front, 34% of the midcaps missed their Q3FY25 estimates according to a note by JM Financial.

Notwithstanding a support from the domestic institutional investors (NII), Foreign Institutional Investors (FIIs) have been on a selling spree. They sold Indian equities worth Rs 11,639 crore on Friday, recording their worst single-day sell-off in February. During the month, they were net sellers at Rs 34,574 crore.

In the 20 trading sessions, they were buyers on just two instances -- On February 18 when they had bought domestic shares worth Rs 4,786.6 crore and on February 4 when they purchased shares worth Rs 809.2 crore.

Also Read: FIIs record highest single-day selling in February on Friday, sell shares worth Rs 11,639 crore

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