Indian small-cap index slides as IDBI Bank stake sale and tech stocks tumble

The Nifty Smallcap 100 index slipped about 1% in Thursday’s intraday trading, contrasting with a 1% rise in the Nifty 50, as a group of small-cap stocks—including IDBI Bank, HFCL, MTAR Technologies, Netweb Technologies, Mangalore Refinery and Petrochemicals and Chennai Petroleum Corporation—declined sharply. HFCL, Sterlite Technologies and MTAR each hit a 5% lower-circuit, reflecting broader weakness in AI and data-centre stocks after the Nasdaq Composite dropped 1.88%.

Sterlite’s shares, which have surged 757% year-to-date, were among those pressured. In parallel, the Union Cabinet approved Fairfax Financial Holdings’ purchase of a 60.72% controlling stake in IDBI Bank for ₹52,878 crore, valuing the bank at roughly ₹87,085 crore and removing a long-standing ownership overhang. The transaction, pending regulatory clearance, aims to enhance capital allocation and help the government meet its FY27 disinvestment target. Analysts also noted Emmvee Photovoltaic Power’s 8% intraday dip despite a 50% year-to-date gain, maintaining a buy rating with a ₹430 price target.