Midcaps Crashing: Why Retail Is Worried & What’s Next For The Market

The market has gone through 12-15 months of time correction without delivering returns, and investors are feeling the heat. The real concern now is the sharp price erosion in mid-cap and small-cap stocks over the past 15–20 days, with several names falling 30-45% in just a fortnight. High valuations with no margin of safety have left these stocks extremely vulnerable- any mistake gets punished immediately. Retail investors are using every rise to exit their high-valuation positions, signalling deeper stress in this segment. While large caps haven’t performed, they’ve protected capital, which is becoming more important in this environment. Over the next 10–18 months, strength is expected to emerge from the large-cap space.