Continuing the one-page-a-day breakdown of *The Big Review 2026*.

Last post was about macro holding up better than expected. Today's page is about Midcap 100 and Smallcap 100 perfoirmance against the NIFTY Index, and this is how the report presents the situation.

one page a day, simple language, practical takeaways.

**4 simple takeaways from this page:**

**Mid & small caps are still expensive**  
Even after the recent correction, valuations in midcap and smallcap indices are still elevated compared to historical levels. Markets have cooled, but they’re not exactly “cheap” yet.

**The correction underneath has actually been brutal**  
While the indices themselves haven’t fallen massively, many individual stocks inside them are down much more.  
Smallcap constituents are down \~39%, midcap constituents \~32%, compared to smaller index-level falls.

**Large caps look relatively more stable**  
NIFTY100 valuations look less stretched compared to mid/small caps, and the drawdown in large-cap stocks has been comparatively controlled.

**Charts show why stock picking matters now**  
The left chart shows how stretched valuations became over the years, especially in mid/small caps. The right chart shows that many stocks have already corrected sharply.  
This is probably why the report mentions “bottom-up opportunities”, meaning selective buying instead of blindly buying the whole market.

**Bottom line:**  
The correction has happened more inside individual stocks than in the headline indices. Valuations are still elevated overall, but selective opportunities may finally be opening up beneath the surface.

The Big Review 2026 by HDFC SECURITIES - Day 5 - The MIDCAP/SMALLCAP VS NIFTY