New Delhi, Feb. 20 -- After delivering robust returns over the past two years, mid-cap and small-cap stocks have faced sharp corrections in 2025, weighed down by global uncertainties and macroeconomic headwinds. A combination of relentless foreign institutional outflows, weak corporate earnings, and a weakening rupee has intensified the selling pressure.

Adding to investor concerns, U.S. President Donald Trump's recent announcement of fresh tariffs has raised fears of a potential trade war, which could slow global economic growth and increase inflationary pressures. As a result, Indian equities, particularly the mid-cap and small-cap segments, have seen a steep decline this year.

The Nifty Midcap 100 index has significantly underperform...