Mid-cap, Small-cap indices plunge over 5% as investors book gains

Thus far in FY18, the mid-and small-cap indices have outperformed the frontline benchmarks by rising 22.5% and 29.7%, respectively, as compared to 21.2% gain in the Sensex till Thursday

The mid- and small-cap indices lost ground on Friday, as investors booked profit in stocks of these two segments following the Budget proposal to levy 10 per cent long-term capital gains tax (LTCG) on sale of equity investments. Analysts also attributed the fall, especially in these two market segments, to the sharp run-up seen over the past year.

The S&P BSE MidCap and S&P BSE SmallCap indices lost up to 5 per cent on the BSE on Friday. By comparison, the S&P BSE Sensex slipped 2.3 per cent to 35,067.