Nifty Midcap 100, Smallcap 100 slide 4%, down 10-13% from 52-week high

Small-cap and mid-cap stocks witnessed a sharp sell-off on Friday, with both indices falling nearly 4 per cent. The decline extended the ongoing weekly correction, as investors continued to face pressure from margin calls, portfolio losses, and concerns over further downside. 

 

Ambareesh Baliga, independent market expert, said that the current sell-off “is not about the valuations, and more about margin calls, which have been hitting retail investors. In addition, people who have been buying over the last few months at every market dip are now seeing losses on their averaging strategy. Even if they have equity holdings, they are reluctant to put in fresh funds," he said.

 

 

Notably, on Friday, Nifty Midcap hit an intraday low at 55,208.95, down 3.2 per cent, and Nifty Smallcap fell to 17,571.60, down 3.8 per cent

 

The Smallcap index plunged 7.4 per cent over the past week and is down over 10 per cent from its 52-week high of 20,187.80. Similarly, the Midcap index plunged 5.86 per cent over the past week and is down over 12.9 per cent from its 52-week high of 64,450.90 Among the Nifty Midcap 100 constituents, Swiggy led the losses, followed by Motilal Oswal Financial Services. Other major laggards included Colgate-Palmolive, Godrej Properties, Lodha Developers, Adani Total Gas, Blue Star and Voltas.

 

Baliga noted that another reason behind selling pressure is that funds are also being diverted to the Jio IPO. “Two days ago, both FIIs and DIIs were buying. That’s a fairly rare situation, and despite their buying, we saw a major fall in the market that day. So, where was the selling coming from? It was likely from retail investors and HNIs,” he said.

 

He added that, in the case of HNIs, some may be liquidating parts of their portfolios because they believe the market could fall further. “As a result, we are seeing portfolio-wide selling at times,” Baliga said.

 

Vipin Kumar, AVP research at Globe Capital Market, said the Nifty Midcap 100 has entered the gap support area (with the lower edge at 54,667) left during its upward move on April 8, 2026, while the Smallcap 100 is approaching the price support zone around 17,400–17,200. “We might see a temporary halt around these levels. Going forward, a decisive break below these support zones would be a negative development, potentially dragging both indices further lower toward the 52,500–52,000 and 16,800–16,400 ranges, respectively,” he added.

 

Ravi Singh, chief research officer at Master Capital Services, said that Nifty Midcap and Smallcap indices are falling due to continued FII selling, higher crude oil prices above $110 per barrel and escalating West Asia tensions, and increasing inflation concerns. Profit-booking and expensive valuations have intensified the correction, while inconsistent earnings growth has weakened investor confidence. “Rising fundraising activity is also absorbing market liquidity. Despite the sharp decline, many stocks remain expensive relative to earnings, suggesting continued volatility and selective buying rather than an immediate broad-based recovery,” he added.

  

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.