Midcap stocks drop 10% from highs, head for correction as growth outlook sours

A blistering rally in mid-cap stocks is on course to enter correction territory, as investors become increasingly concerned over slowing earnings growth and elevated valuations. The Nifty Midcap 100 fell by 2.9% on Friday, extending its decline from recent highs to over 10%, indicating a technical correction. The downturn was driven by heavy selling from foreign portfolio managers this month, following a 30% rally in the index up to September 23.