The broader equity market came under heavy selling pressure on Thursday, with small-cap and mid-cap indices declining up to 2.5 percent as investors turned cautious amid a broad-based correction.
The Nifty Smallcap 100 fell 2.34 percent, snapping its three-day rising streak, while the Nifty Midcap 100 declined 2.53 percent, extending its previous session fall of nearly 1 percent.
The broader market witnessed sharper losses than the benchmark indices, reflecting sustained selling pressure and weakening market breadth.
Ajit Mishra, SVP-Research, Religare Broking, said the selling was broad-based, with mid- and small-cap stocks coming under pressure after their prolonged period of outperformance.
"With the earnings season now underway, investors should remain highly selective, particularly in the broader market. It would be prudent to avoid averaging down on loss-making trading positions in lagging stocks merely in anticipation of a rebound; instead, focus on stocks showing improving earnings visibility, relative strength and stronger price structure," he said.