HDFC Securities' MTF book is set to fall from ₹1.58 lakh crore to ₹1.4 lakh crore, a 12% slide that could amplify selling pressure on midcap and smallcap stocks—those segments have already seen their indices dip sharply after last month’s rally. NEWPAR The book grew 70‑80% last year, soaring to a record ₹1.58 lakh crore; exchange data as of Oct 21 shows it at ₹1.47 lakh crore, and Managing Director Dhiraj Relli says the 12% estimate reflects a correction in HDFC Securities’ own positions, not a confirmed industry‑wide figure. NEWPAR Midcap and smallcap stocks, with thinner trading volumes, feel the pinch when HNIs and retail investors liquidate positions; the recent correction has hit these tiers harder than largecaps, a pattern that emerged after midcaps hit August highs. NEWPAR The Jio Platforms IPO, with its huge demand and limited allotments, is expected to return significant funds to investors—potentially easing secondary market pressure next week as those funds are re‑deployed into the market. NEWPAR But a rebound hinges on broader market sentiment; geopolitical strains could dampen buying interest, while bottom‑up picking may thrive if liquidity returns—analysts warn that the market must stay wary of further corrections before midcaps can truly recover.