Stock market, March 11 -- Indian retail investors, the major force behind the significant rally in Indian stock markets post-COVID-19, are now at a crossroads as heightening global trade tensions, a relentless drop in their favorite mid- and small-cap stocks, and rising recession fears are testing their resilience.

The equity market boom, which began in April 2020, has attracted many investors to shift their focus to stock investing, leaving behind traditional savings options such as bank deposits. Many have achieved stellar returns, further influencing others to try their luck by investing their savings in equities, resulting in strong demat account additions and huge inflows into mutual fund schemes.

However, markets cannot maintain a...