More than 100 small-cap stocks saw declines ranging from 10% to 26% as major indices fell over 4% in the latest trading week.
The BSE Sensex dropped 1,906.01 points, or 2.39%, closing at 77,580.31, while the Nifty50 index fell by 615.5 points, or 2.5%, finishing at 23,532.70.
The BSE Mid-cap and Small-cap indices also faced significant losses, down 3.9% and 4.6%, respectively.
Market analysts suggest that the benchmark indices are encountering resistance at 23,650, with support observed at 23,450, establishing a short-term trading range.
The recent downturn is attributed to profit booking, FII selling, disappointing earnings from Indian corporations, and rising inflation concerns.
The broader indices have now extended their losing streak for the second consecutive week, reflecting a challenging environment for investors.