Retail pain rises as smallcap stocks miss the bluechip party: Is the undercurrent turning bearish?
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As the Sensex danced 1,300 points higher this week, toasting a 1.6% gain, the smallcap brigade looked like it had shown up at the wrong party — or worse, got turned away at the gates. The BSE Smallcap Index slipped 1.33%, and the real drama unfolded deeper down: at least 50 smallcap stocks crashed into double-digit losses, some nosediving as much as 18%. Call it the tale of two markets. On one side, heavyweight Reliance Industries — India’s most valued stock — roared 9% higher, buoyed by a Q4 earnings glow and a fresh wave of FII love. On the other hand, investors in names like Gensol Engineering, Tejas Networks, Sterling and Wilson Renewable Energy, Godrej Agrovet, and Senco Gold lost money. Foreign institutional investors (FIIs) pumped nearly $1 billion into Indian equities this week, drawn in by a softening dollar and the stability of bluechips. But while the giants soaked in the inflows, investors used the rally as an exit cue from br...