Nifty Smallcap 100 Plunges to 14,986 Low: Why Mid- and Small-Caps Are Crashing Harder Than the Market in March 2026

  The Indian stock market witnessed intense selling pressure on March 23, 2026, as mid- and small-cap indices tumbled over 4% amid a broader market crash driven by escalating geopolitical tensions in the Middle East. The Nifty Midcap 100 index has now declined around 13% year-to-date in 2026, reflecting sharp corrections in broader market segments that have outperformed in previous years but are now facing heightened volatility. Sharp Intraday Declines in Midcap and Smallcap Indices The Nifty Smallcap 100 index opened at 15,565.30 on Monday but quickly slipped to an intraday low of 14,986, erasing significant ground in early trade. By the afternoon session, the selling intensified, with the index down over 4% at points during the day. Market breadth was overwhelmingly negative—except for isolated performers like Trident (up around 2.85%), virtually every stock in the Nifty Smallcap 100 traded in the red, signaling widespread panic across smaller companies. Similarly, the Nifty M...
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Is It Time to Sell NTPC? Analyzing Short-Term Risks Amid IPO Launch

 

As NTPC prepares to launch its NTPC Green Energy IPO, investors are weighing whether to hold or sell their shares in the company. Here are some critical factors to consider before making your decision.

1. Overvaluation Concerns

The estimated discounted cash flow (DCF) value for NTPC is ₹215.28 per share, while its current market price stands at ₹423.95. This indicates that the stock is overvalued by approximately 49%. Such a significant discrepancy raises red flags for short-term investors.

2. Risks Highlighted in IPO Filing

NTPC Green Energy has outlined potential risks in its IPO filing, particularly concerning import restrictions from China. As a major supplier of solar and wind equipment, any trade restrictions could adversely affect NTPC's business operations. The company imported ₹1,271 crore worth of equipment from China in FY24, making it vulnerable to supply chain disruptions.

3. Market Sentiment and Alternatives

While NTPC faces challenges, Tata Power presents an appealing alternative. Following a recent upgrade from Morgan Stanley, Tata Power's shares have surged to record highs. The company is undergoing a multi-year transformation, with 45% of its capital expenditure (capex) allocated to renewable energy projects from FY23 to FY27. This strategic shift is expected to enhance earnings stability and growth potential.

4. Future Earnings Outlook

Tata Power is projected to increase its share of core earnings from 40% to 90% over the same period. Analysts note a strong 14% compounded annual growth rate (CAGR) in profit after tax (PAT) for FY24-27, indicating a robust earnings trajectory.

Conclusion: What Should Investors Do?

Given the overvaluation of NTPC shares and the potential risks highlighted in its IPO filing, short-term investors may want to consider selling their NTPC holdings. Instead, reallocating funds to Tata Power, which is positioned for substantial growth and lower earnings volatility, could be a more strategic move.

As always, investors should assess their risk tolerance and investment goals before making any decisions. Stay informed and choose wisely!

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