Mid-cap and small-cap stocks decline as investors take profits amid stretched valuations

Mid-cap and small-cap stocks, which had been leading the recent market rebound, were at the forefront of Thursday’s decline as investors turned cautious over steep valuations. The Nifty Midcap 150 dropped 1.6%, while the Small-cap 250 slipped 1.9%. In comparison, the benchmark Nifty closed 0.1% lower.