Smallcap, midcap indices tumble up to 2% amid rising India-Pak tensions: MCX, RVNL, Suzlon Energy shares drop up to 5%

The shares of smallcap and midcap companies strongly tumbled on May 9, pushing the broader market indices sharply in the red as growing tensions between India and Pakistan sent jitters across the market. Nifty Smallcap index dropped nearly 2 percent to stand at 15,866, while Nifty Midcap fell over 1 percent to hover around 52,693.

Indian armed forces conducted targeted military strikes on terrorist outfits across Pakistan under the codename 'Operation Sindoor'. Pakistan retaliated by firing missiles across several locations in India, which were successfully intercepted by the Indian army. What followed was continued cross-border firing overnight.

"Heightened border tensions and weak global cues dragged down markets and the rupee. Investors are advised to stay cautious, avoid aggressive positions, and focus on fundamentally strong stocks with limited near-term exposure to geopolitical risks," said Shrikant Chouhan, head of equity research at Kotak Securities.

MCX shares were the top loser on the smallcap index, falling nearly 6 percent to trade at Rs 5,670 apiece. Notably, this comes a day after the company released its results for the fourth quarter of FY25. MCX reported a net profit of Rs 135.46 crore for Q4 FY25, marking a 54 percent rise from the Rs 87.87 crore reported in Q4 FY24. Along with the Q4 results, the company also announced a final dividend of Rs 30 per equity share for FY25.