New Delhi, June 20 -- The recent volatility in the Indian stock market has taken a toll on mid- and small-cap stocks, as investors grow increasingly cautious amid global uncertainty and elevated valuations, prompting them to exit these segments in search of safer bets in large-cap stocks, which are often perceived as more stable during turbulent phases.

Global markets have been on edge this week, with the latest escalation between Iran and Israel adding fresh strain to an already fragile global economy-one still grappling with the effects of trade tensions and the ongoing Russia-Ukraine war. However, the Indian stock market managed to end the week with healthy gains, supported largely by strength in blue-chip stocks.

Despite rising crud...