New Delhi, Feb. 11 -- The once high-flying small-cap stocks, which seemed to have no limit to their rally, are now struggling to find shelter from the continued sell-off. Valuation concerns and weak December quarter performance have pushed many of these stocks to multi-month lows, with some even hitting one-year lows.

The fall in small-cap stocks, which started as profit booking in October, has deepened over the following months as earnings reports fell short of Street estimates, raising concerns over valuations. Additionally, escalating tariff tensions between global superpowers have unsettled investors, driving them away from risky assets and towards safe-haven investments.

Foreign portfolio investors (FPIs) have been offloading share...