Broader markets extend losses, fall up to 3%: Nifty Midcap 100 goes below 100-DMA; Ola, Oberoi Realty among top losers

Ola, Oberoi Realty shares see profit booking.

The broader markets extended their losses in Tuesday’s session, mirroring the decline in the benchmark indices, Sensex and Nifty.

The Nifty Midcap 100 and Nifty Smallcap 100 underperformed the frontline indices, falling by up to 3 percent, while the benchmark Sensex and Nifty also traded lower.

The Nifty Midcap 100 slipped below its 100-day moving average (DMA) to 57,898.65 during intraday trade, with Oberoi Realty and UPL emerging as the biggest laggards.

Shares of real estate companies declined sharply on Monday, led by losses in Oberoi Realty, as investor sentiment turned weak following the company’s Q3 earnings.

Oberoi Realty reported a consolidated net profit of Rs 622.64 crore for the October–December quarter of the ongoing financial year 2026. This represented a marginal year-on-year increase of 0.69 percent from Rs 618.38 crore reported in Q3 FY25, but an 18 percent quarter-on-quarter decline from Rs 760.26 crore recorded in the previous quarter (Q2 FY26).

The Nifty Smallcap 100 index extended its losing streak for a third consecutive session, falling over 4 percent during the period.

Newgen Software Technologies, Data Patterns (India), Ola Electric Mobility and Aditya Birla Real Estate emerged as major laggards in the index, with their shares declining by as much as 12 percent.

Shares of Ola Electric Mobility slipped 5.5 percent to Rs 33.7, hitting their lowest level in nearly a month, after the electric vehicle maker announced the resignation of its Chief Financial Officer Harish Abichandani due to personal reasons. The company said Deepak Rastogi has been appointed as the new CFO with effect from January 20.

The stock marked its tenth consecutive session of decline and has fallen 57.7 percent so far in 2025.

N ArunaGiri, CEO of TrustLine Holdings, said "It has been a one-way fall for the small-cap index since the start of November last year. At the index level, small caps are down over 11.5% since then. That alone looks painful, but the reality beneath the surface is far worse. Even in the current month, from January 1st, the small-cap index has fallen by about 7.5%. And this is only the aggregate picture. When we go deeper, the stock-specific carnage is severe. A large number of stocks are down 40–50%. In fact, one could argue that nearly half the market, particularly across the small-cap spectrum, has seen drawdowns of this magnitude."

"The pain in mid caps is equally intense. Given the extent of the fall and the brutality of the correction, the obvious question arises: Has this become a buy-on-dips market? Unfortunately, the answer is no. Valuations remain meaningfully above historical averages. Before this correction, the small-cap index was trading at around 28–30x trailing earnings. Post the fall, valuations have moderated to about 25–26x, but this is still a huge premium to long-term averages. So at a broader market level, small and mid caps continue to look expensive, and it would be naïve to rule out more pain in the space. Does that mean investors should simply sit on the fence and wait for much lower levels? That approach is equally not prudent. At the stock-specific level, for truly bottom-up and selective investors, many compelling opportunities are emerging across small and mid caps, provided one is extremely choosy. In that sense, this is not a universal buy-on-dips market, nor is it a market to completely stay out of. It is a market that rewards selective bottom-up stock-specific approach. That, in essence, is the story emerging from the current small- and mid-cap carnage. Time to be choosy, selective and bottom-up," he added.

Extending its previous day's decline, the Sensex tumbled 1,065.71 points, or 1.28 percent to settle at 82,180.47. During the day, it dropped 1,235.6 points, or 1.48 percent to 82,010.58.

The Nifty tanked 353 points, or 1.38 percent to end at 25,232.50, marking its steepest single day decline since April 7, 2025. The sharp fall dragged the index to its lowest closing level since October 15, 2025.

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