MTF effect: Heavy erosion in small-midcap stocks
There has been heavy selling in the broader market for the past week. Especially the impact of MTF-margin trading facility has been seen. Due to the rising crude oil prices due to geopolitical tensions, selling is being seen from all sides in the stock market and due to this, the stock market is gradually falling to lower levels. In which investors working with MTF were tired of filling margins, who were still not seeing sentiment or positive trend in the market and started relaxing. This week, due to the report that investors are relaxing from MTF, there was a heavy erosion in smallcap and midcap stocks. The official figure of investment in margin trading facility-MTF is Rs. 1.80 lakh crore, while the figure of dabba trading or unofficial work is high. Due to the collapse of all these stocks, there has been a heavy erosion in the stock market. In the last seven sessions, the midcap and smallcap indices have fallen by about 8 percent and this decline is still continuing. According to experts, there are still no signs of improvement in the market, crude oil prices are increasing, the effect of which has been seen in the broader market along with heavyweight stocks. It is worth mentioning here that the broader market is more sensitive compared to index-based stocks, so if selling starts in it, it continues non-stop. Panic was also seen in both due to margin call triggers.