Stock market, March 14 -- Indian retail investors, who have actively invested in mid- and small-cap stocks in recent years due to their relatively low trading prices compared to large caps, now seem to be gradually shifting away from them.

Increased volatility in domestic markets, driven by both local and global headwinds, coupled with weak earnings, has made these segments major casualties in the sustained sell-off in local equities, prompting investors to pull away from this space.

The prolonged weakness in the market has turned investor sentiment cautious, which is reflected in the drop in trading volumes, delivery volumes, and even the opening of new demat accounts.

Further reinforcing their cautious approach to the market, investo...