Nifty Above 22,000; Mid and Small Cap Stocks Under Pressure

The Indian benchmark indices are trading in red amid sharp cuts in mid and small caps. The BSE Smallcap and BSE Midcap are down by 2% each. Nifty is currently trading well above the psychologically important mark- 22,000.

Anand James, Chief Market Strategist, Geojit Financial Services said, “Nifty 50 constituents registered a green candle in the last hour on Friday, encouraging to take a positive stance today. However, inability to clear 22350 may push index down towards 21851.”

Here’s a look at key factors to watch out for in March

Valuation

Mid and small cap stocks came under intense pressure. Several analysts believe that large cap stocks seem to be attractive for buyers.

Tariff concerns

Uncertainty revolving around Trump-induced tariffs and potential reciprocal tariff continues to worry the street. Inflationary concerns are on the rise in the U.S. as the country is expected to impose tariffs on Canada and Mexico, along with additional tariffs on China, from March 4. Amid the latest developments taking place in the global economy, noted investment veteran and the Oracle of Omaha, Warren Buffet has called them an ‘act of war.’

Essential data

March is expected to be an interesting month for global markets as several recognised bodies are expected to release key data points. Investors will keep a close watch on domestic IIP and Consumer Price Inflation data, which is set to be released on March 12.

Nifty Above 22,000; Mid and Small Cap Stocks Under Pressure

FIIs have sold Indian equities worth ₹1.5 lakh crore so far in 2025. Total outflows have clocked above ₹3 lakh crore since last October.