Why are midcap, smallcap indices underperforming today? Details here

Broader markets slip in trade: Broader market indices, Nifty SmallCap and Nifty MidCap were under pressure on Monday, March 10, 2025, as they fell up to 2 per cent in intraday deals on NSE. 

 

Nifty SmallCap 100 index plunged as much as 1.95 per cent to an intraday low of 15,201.75, while Nifty MidCap 100 index slipped 1.60 per cent to an intraday low of 48,403.

 

At the time of publishing the report, 360One (down 7 per cent), Triveni Turbine (down 6.5 per cent), Titagarh (down 6 per cent), Apar Industries (down 6 per cent), BirlaSoft (down 5.5 per cent), and Sterling and Wilson Renewable Energy (down 5 per cent) were among the top losers on the Nifty SmallCap 100 index.

 

Similarly, Kalyan Jewellers (down 5.6 per cent), Dixon Technologies (down 5.5 per cent), CG power (down 4.9 per cent), BSE (4 per cent), FACT (3.9 per cent), and Indian Bank (down 3.5 per cent) were among the top losers in the Nifty MidCap index.

 

Ravi Singh, SVP of retail research at Religare Broking noted that after four consecutive days of positive momentum, both MidCap and SmallCap indices faced a sell-off today, dropping nearly 2 per cent from their recent highs. 

 

The selling pressure, he believes, was driven by a mix of factors, including high valuations despite declines of more than 18 per cent and 20 per cent from their peaks, ongoing economic uncertainties, and liquidity concerns. 

 

Additionally, Asian markets witnessed a downturn due to concerns over US tariffs and deflationary pressures in China, he added. 

 

“Given the current situation, it would be prudent to wait for more favourable levels, as both MidCap and SmallCap indices remain expensive and may see further corrections in the near-term,” advised Singh

 

Notably, excluding today’s losses, Nifty MidCap and SmallCap indices have fallen 23.85 per cent and 27.16 per cent, respectively, from their 52-week highs.

 

From a technical point of view, analysts said that SmallCap and MidCap indices faced resistance at the R3 monthly Camarilla pivot, which they struggled to break in the current session. This key resistance level led to selling pressure, causing both indices to trade in the red today. Moreover, MidCap found resistance near 11,200, while SmallCap faced resistance at 15,600. 

 

“The inability to sustain above these levels triggered profit booking and consolidation, influencing overall sentiment. Traders closely watched these levels for potential breakouts or further corrections,” said Jigar S Patel is a senior manager of equity research at Anand Rathi.