Indian Stock Market, Jan. 28 -- Investors continued to withdraw funds from Indian small-cap stocks for the third straight session on Tuesday, January 28, causing the Nifty Smallcap 100 index to hit multi-month lows and trade with a significant drop from its recent peak.

The retail investors' favourite segment has now been under significant selling pressure as earnings reported by major companies in this space have come below street estimates, raising concerns over their rich valuations.

Investors had anticipated a rebound in earnings for the December quarter that would justify the current valuations. However, the earnings reported by companies so far have fallen short of expectations, triggering a significant sell-off.

In today's sessi...