Archive · 25 Jul 2025
Small-Cap Stocks Slide: IEX Leads as Market Drops
Some small companies' stocks have gone down in value this week.
The Indian Energy Exchange (IEX) stock fell a lot because of new rules and lower ratings.
Another company, Newgen Software, also had a bad week after not doing well in the last three months.
Reliance Power's stock price dropped due to issues like government investigations and poor financial results.
Many analysts believe these small company stocks may continue to struggle because their prices were too high, and the companies haven't been earning as much money recently.
Several small-cap stocks, including Indian Energy Exchange (IEX), experienced significant price declines this week.
Indian Energy Exchange (IEX) shares dropped 30% due to market changes and rating downgrades.
Newgen Software saw a 12% drop following weak Q1 performance.
Reliance Power fell 11.3% amid negative developments, including reports of Enforcement Directorate raids.
Analysts suggest the downturn in small-cap stocks may continue due to high valuations and a tepid earnings season.
- Who
- Investors and analysts are reassessing their exposure to small-cap stocks.
- What
- Several small-cap stocks experienced significant price declines.
- When
- This week, with declines accelerating in recent days.
- Where
- Dalal Street (implied location of Indian stock market)
- Why
- Due to weak domestic cues, tepid earnings, and selling by overseas investors.
Current Investors
Market Analysts
Valuation Discrepancies
Current Investors
Investors in small-cap stocks are facing losses due to the current market downturn.
Market Analysts
Analysts are considering that this is an over correction, and valuations may eventually adjust positively.
- IEX Drop
- 30%
- Newgen Software Drop
- 12%
- Reliance Power Drop
- 11.3%
- Nifty Smallcap 100 Index Drop
- 4% this month