New Delhi, March 12 -- Small-cap stocks faced selling pressure for the second consecutive day on Tuesday, with the Nifty SmallCap 100 index plunging by 2.5% during today's intraday trade to 15,012 points, following a 2% decline in the previous trading session.

Concerns have been raised by analysts regarding the prolonged rally in small-cap stocks in recent months, leading to inflated valuations. Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (Sebi), highlighted these concerns on Monday, emphasising the stretched valuations observed in both small- and mid-cap stocks. This warning contributed to a sharp drop in small-cap stocks during the previous trading session.

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