Nifty MidCap 100 slips 4% in five days; what should investors do?

Broader market indices, Nifty MidCap 100, declined for five days in a row, slipping 4.4 per cent. Thus far in the calendar year 2025, the MidCap index has underperformed the market, falling 1.3 per cent, as against a 4 per cent rise in Nifty50. In the intraday trade, the index fell 2 per cent to the day’s low at 56,394.8.

 

At 2:12 PM, Nifty Midcap 100 was down 2.01 per cent at 56,401.6. In comparison, Nifty50 was down 0.95 per cent at 24,653.95. 

 

Out of 100 stocks on the Nifty MidCap 100 index, 98 declined in intraday trade. Among others, Vodafone Idea and Waaree Energies were among the top laggards, down 7.95 per cent and 6.9 per cent, respectively. Besides, Biocon, Hindustan Zinc, and PB Fintech fell over 4 per cent. Oracle Financial Services, Ola Electric, Premiere Energies, and Dixon Technologies fell over 3 per cent. 

 

Vodafone Idea shares slipped after the Supreme Court (SC) said that it needed more time until October 6 to come up with a resolution plan. Vodafone Idea raised no objections to the government's demand.

 

The company’s shares hit a seven-month high of ₹8.97 per share on September 23, in anticipation that the Government would come up with a resolution plan to support the dilapidated financial condition of the company. During the previous hearing in the adjusted gross revenue (AGR) case on September 19, the Department of Telecommunications (DoT) had informed the SC that the Government firmly believed that "some solution has to be found" regarding Vodafone's plea seeking directions to set aside the telecom department's additional demand for AGR. 

 

That apart, Waaree Energies tumbled on reports that the US is investigating for evading anti-dumping and countervailing duties on solar cells from China and other Asian countries.  

What should investors do?

Analysts believe selective opportunities have emerged in the MidCap space amid recent weakness.

 

“The recent weakness in these segments has opened up attractive entry points for patient investors who focus on quality businesses. This is not a market for chasing the index; it’s a market that rewards thoughtful, selective stock picking in the broader space,” said N Aruna Giri, founder & CEO at TrustLine Holdings.  

 

Further, according to Giri, this phase of the market is presenting a constructive environment for long-term investors, particularly those willing to take a bottom-up approach in identifying fundamentally strong companies in the MidCap segment.