From The Economic Times · Ravindra Sonavane · · 1m 10s
Midcaps Enter Correction Zone
Indian midcap stocks drop 10.2% from 52-week high as sell-off deepens.
In brief
Indian midcap stocks drop 10.2% from 52-week high as sell-off deepens. Nifty Midcap 150 fell 10.2% from its August 31 high after three months of declines. Originally reported by The Economic Times.
Market Correction Deepens
The Nifty Midcap 150 has fallen 10.2% from its 52-week high recorded on August 31.
Smallcaps Also Decline
The Nifty Smallcap 250 index has dropped 8% from its September 8 high after a 2.3% fall.
Microcaps Fall Further
The Nifty Microcap 250 index is down 8.1% from its recent high in the first week of October after a 2.6% drop.
Sensex and Nifty Decline
The Sensex and Nifty have declined nearly 15% so far in 2026.
Correction Definition
A market correction is generally considered a decline of 10% or more, but less than 20%, from a recent high.
Investor Shifts
Some domestic investors shifted money from large-cap stocks to mid-cap and smallcaps, viewing them as safe amid foreign selling.
Valuation Shifts
Midcap valuations are rising, with the index trading at a 42% premium to the Nifty, above its five-year average of 40%.
Earnings Outlook
Analysts project 16-20% earnings growth for midcap and smallcap stocks despite recent declines.
At a glance
Nifty Midcap 150 fell 10.2% from its August 31 high after three months of declines.
