why small cap down today

The small cap stocks are down today mainly due to a combination of factors including rising geopolitical tensions in West Asia, which have raised concerns of a prolonged conflict potentially disrupting global energy supplies. This has led to a spike in crude oil prices, adding inflation and interest rate worries especially for emerging economies. Additionally, a weakening rupee has put pressure on companies dependent on imports and raised concerns about capital outflows and domestic liquidity. These macroeconomic and geopolitical concerns are weighing heavily on investor sentiment, causing broad sell-offs in smallcap and midcap stocks even as large-cap benchmark indices remain relatively stable. Specific smallcap stocks such as Prime Focus, Electronics Mart India, and others have seen sharp declines intra-day reflecting this negative sentiment.