New Delhi, July 8 -- India's stock market in the first half of calendar year 2025 (H1CY25) painted a tale of divergence between large-cap strength and small-cap weakness. While benchmark indices like the Sensex and Nifty posted strong gains of around 8 percent, the same could not be said for their smaller counterparts. The BSE Midcap index remained largely flat with a marginal 0.2 percent gain, and the BSE Smallcap index fell 1.7 percent, reflecting growing investor caution amid global uncertainties and valuation concerns. With the onset of H2CY25, the key question for investors is whether this subdued segment is poised for a turnaround or if further volatility lies ahead.

The underperformance of mid- and small-cap stocks in the first ha...