Whalesbook
Small & Midcap Stocks Extend Decline Before Partial Rebound
Indian small and midcap equities continued their downward trajectory for a third consecutive session on January 12. The broader market indices significantly underperformed their larger counterparts, with the Nifty Smallcap 100 index falling nearly 2% before paring losses to trade down 0.83% by early afternoon. Similarly, the Nifty Midcap 100 index experienced a drop of about 1% earlier, recovering to a 0.42% decline.
US Trade Deal Comments Inject Hope
The market sentiment saw a shift and initiated a partial recovery after US Ambassador Sergio Gor highlighted India as an "essential partner" for the United States. Gor indicated active engagement on a trade deal, with the next discussion scheduled for the following day. He also conveyed President Trump's well wishes to Prime Minister Narendra Modi, underscoring the robust leader-to-leader relationship and commitment to resolving trade differences.
Tejas Networks Leads Losses on Q3 Results
Tejas Networks was among the top decliners, with its shares shedding over 9% on the Nifty Smallcap 100 index. The steep fall followed the company's announcement of a consolidated net loss of ₹196.55 crore for the third quarter of FY26, a reversal from the ₹165.67 crore profit recorded in the same period last fiscal. Revenue from operations also witnessed a substantial tumble, declining by more than 88% year-on-year to ₹306.79 crore for the December quarter.
Other Notable Declines
Signatureglobal (India) saw its stock drop nearly 5% after the real estate firm cautioned that it would not meet its FY26 pre-sales guidance, forecasting zero year-on-year growth. Other significant decliners included Radico Khaitan, Delhivery, and Laurus Labs, each falling over 4%. BHEL, Prestige Estates, and Godrej Properties were among the midcap stocks experiencing roughly 3% drops. Several other stocks across small and midcap segments, including NBCC, Natco Pharma, Trident, Zen Technologies, Cummins India, and Hitachi Energy India, also faced selling pressure.