Midcaps follow smallcaps into bear territory as selloff intensifies

Concerns over expensive valuation, slowing earnings growth take wind out of broader mkt's sails

- SAMIE MODAK & SUNDAR SETHURAMAN

The Nifty Midcap 100 index tumbled 3.12 per cent on Friday, mirroring smallcaps that have entered the "bear market territory". The 100-share index, a barometer for the performance of companies with the market value ranging between ₹20,000 crore and ₹70,000 crore, extended its fall from the peak to 21.3 per cent.

The Nifty Smallcap 100 dropped 3.4 per cent, stretching its slide from the peak to 25.2 per cent. A bear market is a prolonged decline in stock prices with the major indices falling by 20 per cent or more from their highs. Barring 10, all the Nifty Midcap 100 and Nifty Smallcap 100 components ended with losses. On the mid-cap index, the top losers were BSE, Fertilisers and Chemicals Travancore (Fact), Jubilant Foodworks, while on the small-cap index, Redington, Zensar Technologies, and MCX were the worst performers.