Nifty Midcap News

Indian equity markets faced a significant downturn on April 7, with the Nifty Midcap 100 index falling over 7 percent amid global sell-offs. Investor anxiety grew over a potential global trade war, resulting in a loss of ₹19 lakh crore in market capitalisation.

The Indian midcap segment has experienced significant selling pressure in 2025, with an 11% decline in February. Analysts cite high valuations, sluggish earnings, and FII outflows as key factors. Further downside risks are anticipated as midcap stocks continue to underperform.

Mid-cap and small-cap stocks have suffered major declines in 2025, impacted by global uncertainties, trade war fears, and liquidity issues. After the sharp drop, technical charts signal short-term relief rallies.

Mid-cap and small-cap stocks, historically favoured for high returns, have declined over 2% in January 2025. Despite past strong performance, analysts warn of potential headwinds like regulatory scrutiny and slower earnings growth, suggesting a cautious investment approach focused on quality stocks.

Mid-cap and small-cap stocks have outperformed the Nifty index in 2024, gaining nearly 28% and 29% respectively. Despite volatility concerns, experts suggest the potential for continued growth, with a cautious approach recommended for investors considering these segments in 2025.

The brokerage noted that the largest corrections have occurred in two broad categories of stocks: consumption-related sectors, where earnings downgrades have kept valuations elevated, and ‘narrative’ sectors, where valuations have shifted from being extremely frothy to merely frothy.

The Nifty 50 closed the session with a decline of 0.03%, settling at 24,141 points. The S&P BSE Sensex closed 52.51 points, or 0.07%, lower at 79,433.

Nifty SmallCap 100 index plunged 3.5% in today’s intraday trade, falling below the 18,200 level to 18,149. At current levels, the Nifty SmallCap 100 index is trading at its lowest point since mid-August, having fallen 7.5% from its recent peak of 19,640.

Broader markets outperformed Indian benchmarks on Tuesday, with Nifty Midcap and Smallcap indices rising over 2%. The Nifty gained 0.88%, aided by positive sentiment and expectations of an RBI rate cut. Paytm and Trienni Turbine were top gainers in their respective indices.

The Indian stock market faced a sharp decline due to escalating Middle East tensions, cautious investor sentiment, and SEBI’s new measures limiting retail derivatives trading. The Nifty 50 dropped 2.2%, while mid- and small-cap stocks fell significantly, reflecting a broader market downturn.