Stock market today: Mid- and small-cap indices tumble nearly 3% amid broad-based sell-off

Indian equity benchmarks extended losses for a second consecutive session on Tuesday as persistent foreign fund outflows and global uncertainties weighed on investor sentiment. The sell-off was sharp and broad-based, with frontline indices closing deep in the red alongside heavy pressure in the broader market.

The BSE Sensex pack plunged 1,065.71 points or 1.28 per cent to settle at 82,180.47, while the NSE Nifty index declined 353 points or 1.38 per cent to close at 25,232.50. Mid- and small-cap indices registered steeper cuts. On NSE, Nifty Smallcap 100 tumbled 2.85 per cent, while Nifty Midcap 100 slid 2.62 per cent.

Market expert Arun Kejriwal cautioned investors against bottom fishing, citing elevated uncertainty. "Mid-caps now resemble small-caps, while small-caps have shrunk further amid the impact of Trump's tariff threat. The lack of clarity has created a state of flux. Investors should avoid bottom fishing as there is no bottom yet," he said.

Ajit Mishra, SVP (Research) at Religare Broking, said the broader market witnessed sharp pressure, reflecting heightened risk aversion and weak conviction across segments.

Ravi Singh, Chief Research Officer at Mastertrust, highlighted that both mid-cap and small-cap indices fell close to 3 per cent each, noting that volatility in these segments has remained high over the past few months. "Once the broader market turned cautious, investors started exiting their positions. Mid- and small-caps are more volatile and less liquid, so selling pressure tends to show up faster," he said, adding that volumes indicated a normal correction.

Singh further noted that strong companies may stabilise sooner, while overvalued and weaker stocks could remain under pressure.

For benchmark Nifty50, he said the 24,800–25,000 zone remains a key support area to watch out for.