Kotak warns of sharper correction in small and midcaps

The pain in the small and midcap stocks continues with the BSE Smallcap and the BSE Midcap Indices seeing 2% cuts intra-day even though the Nifty and Sensex are off intra-day lows. According to

Institutional Equities, despite the recent correction, valuations are still rich. While “large-cap. indices and stocks may be range-bound, several midcap, small-cap and ‘narrative’ stocks may see a sharper correction.” The four key headwinds for the India markets, as per the report, include