Small, Midcap Indices Extend Losses for Fifth Session; Waaree Energies, Natco Pharma Among Top Losers

Indian equity markets closed the week on a weaker note as small-cap and mid-cap indices continued their downward streak for the fifth straight session on Friday. The persistent decline mirrored the broader weakness in the benchmark Sensex and Nifty, both of which have been slipping for six consecutive sessions.

Indices Mirror Benchmark Weakness

Over the past five sessions, the Nifty Midcap index has retreated by as much as 3.2%, while the Smallcap100 index has fallen nearly 4%. In comparison, the Sensex and Nifty recorded losses of 2.73% and 2.52% respectively during the same period. Analysts attribute this correction to profit booking and the unwinding of long positions, suggesting that investors are taking money off the table after a sharp rally earlier in the year.

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Market experts believe that the current weakness is part of a corrective phase rather than a reversal of the broader uptrend. According to an industry expert, the decline should be viewed as a healthy pause. “This downmove just seems to be a correction within an uptrend, and hence, it could result in a good opportunity for positional traders and investors. However, from a swing trading perspective, it could be a difficult phase, and one should tighten risk management and wait for signs of reversal,” expert explained.

Pharma Stocks Under Pressure

The small-cap segment was particularly hit by heavy selling in pharmaceutical counters. Sentiment turned cautious after the United States announced that it would impose a 100% tariff on branded and patented drug imports from October 1. Out of the 100 stocks on the Nifty Smallcap100 index, only 13 ended the session in positive territory. Shares of Natco Pharma and Neuland Laboratories dropped as much as 4% in intraday trade.

Midcap Laggards: Waaree Energies Leads the Fall

Midcap counters also faced sharp losses, with Waaree Energies leading the decline after tumbling nearly 6%. The fall came after reports that U.S. customs officials had opened an investigation into the company for alleged tariff evasion. Other notable laggards included Premier Energies, Vodafone Idea, Biocon, Kalyan Jewellers India, and Hindustan Zinc, all of which slipped up to 3% during the day.

Despite the correction, analysts maintain that the broader market remains structurally strong. Short-term volatility, however, may persist as investors adjust their positions ahead of global policy decisions and domestic earnings announcements.

Conclusion

The fifth straight day of losses in small-cap and mid-cap indices highlights the impact of profit booking and global developments on Indian equities. While the correction has weighed on near-term sentiment, experts suggest that the longer-term trend remains positive, offering potential opportunities for investors once stability returns.