New Delhi, April 13 -- If your equity portfolio is hurting this quarter, you're not alone.

Indian equities have had a bruising start to 2026. As of 31 March, the Nifty 50 is down 14.5% year-to-date, the Nifty 500 about 14%, and mid- and small-cap indices have fallen 13-14% in just three months. By any short-term measure, this has been a sharp correction.

Step back, though, and the picture looks very different. The Nifty 50 is still up 52%. The Nifty Midcap 100 has gained 118%, and the Smallcap 100 about 88%. A Rs.10 lakh investment in midcaps five years ago would be worth roughly Rs.21.8 lakh today, even after the recent fall. The current drawdown is painful, but it hasn't erased wealth; it has compressed valuations.

The nature of the ...