Broader Market Wipeout Deepens: Nifty Midcap 100 crashes over 7% amid global sell-off

Indian equity markets witnessed a broad-based meltdown on Monday, April 7, as the Nifty Midcap 100 index crashed over 7 percent, tracking a deep sell-off across global markets. Sentiment turned sour as fears of a full-blown global trade war raised the spectre of a potential recession in the US and other major economies, prompting widespread liquidation across sectors.

The Nifty Midcap 100 has now fallen 23 percent from its all-time high of 60,925.95 recorded in September 2024. Monday’s sharp correction reflects rising investor anxiety and a decisive shift toward risk aversion amid global uncertainty.

The carnage was not limited to the midcap space. Benchmark indices also plunged around 4 percent each, in line with losses seen in Asian markets and Wall Street futures. The BSE Sensex and NSE Nifty opened with a gap-down and extended losses in early trade, with all constituents ending in the red.

The sell-off left investors poorer by ₹19 lakh crore, as the total market capitalisation of companies listed on the BSE fell to ₹383.81 lakh crore from ₹403.34 lakh crore earlier.

Midcap Rout Deepens in 2025

So far, 2025 has proven to be a turbulent year for broader markets. The Nifty Midcap 100 index is down over 17 percent year-to-date. While the index managed to recover nearly 8 percent in March, that rebound has been entirely wiped out in April alone, with a 6.5 percent fall in just the first week of the month. Earlier, the index had declined nearly 11 percent in February and over 6 percent in January.

No Safe Havens in Midcaps

In intra-day trade on Monday, every single constituent of the Nifty Midcap 100 index was in the red. Mazagon Dock Shipbuilders was the biggest loser, tanking over 10 percent. Bharat Forge and MRPL followed with losses of more than 9 percent each.

Several other midcap names also saw sharp declines of over 5 percent, including JSW Infrastructure, IREDA, Sona BLW, Max Healthcare, KPIT Technologies, Polycab India, RVNL, HDFC AMC, Bharat Dynamics, Bandhan Bank, Cochin Shipyard, HUDCO, BSE, APL Apollo, ABFRL, Fertilisers and Chemicals Travancore, SJVN, Coforge, Bank of Maharashtra, Tata Elxsi, Tata Communications, Suzlon Energy, SAIL, SRF, Persistent Systems, Oil India, NMDC, Mphasis, M&M Financial Services, LIC Housing Finance, IRB Infra, IOB, IGL, Indian Hotels, Vodafone Idea, IDBI Bank, Hindustan Zinc, Godrej Properties, and Biocon.

Expert Views: Midcaps May Be Down But Not Out

According to Om Ghawalkar, Market Analyst at Share.Market, the volatility in midcaps is not entirely unexpected. “While it’s too early to determine whether midcaps will outperform going forward, one pattern remains consistent—midcaps, being inherently riskier, tend to experience sharper declines but also stage quicker recoveries. Investors should remain cautious yet optimistic, keeping an eye on market trends and economic indicators to navigate the volatility effectively,” he said.

Alekh Yadav, Head of Investment Products at Sanctum Wealth, warned that despite the correction, valuations in the midcap space remain elevated. “On a 12-month forward PE basis, they are still above their 10-year average. Additionally, earnings growth expectations for midcaps have moderated from a previously high rate. Given this, we currently favor large caps, where valuations appear more reasonable,” he noted.

The dramatic sell-off in the Nifty Midcap 100 underscores the fragility of investor sentiment in the face of global uncertainty. While the recent correction has erased prior gains and raised red flags about valuation excesses, it also highlights the need for a cautious, diversified investment approach. As the global economic picture remains uncertain, market participants will be closely watching macroeconomic cues and corporate earnings trends to gauge the path forward.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.