Indian equity markets have seen a sharp correction and Kotak Institutional Equities has added five midcap stocks to its model portfolio. The latest changes, disclosed in its strategy report dated 26 October 2026, include companies from the healthcare, electronics manufacturing, pharmaceutical, auto components and digital services sectors. The stocks have fallen 6% to 16% over the last month, a sign of recent market weakness.

Kotak Model Portfolio Adds Five Midcap Stocks

Apart from the ongoing volatility in Indian equities, the portfolio changes have been led by elevated crude oil prices, geopolitical tensions and concerns about corporate earnings, which have impacted investor sentiment.

The five inclusions are Aster DM Quality Care, Dixon Technologies, Emcure Pharmaceuticals, Endurance Technologies and Indegene.

The valuation multiples and the price declines are rounded numbers taken from the strategy report dated the 26th of October 2026.

The additions reflect changes made to the portfolio composition in response to recent market corrections. But a fall in share prices does not necessarily mean an improvement in the underlying performance of the business.

Aster DM Quality Care and Dixon Technologies

Stock price of Aster DM Quality Care (NSE: ASTERDM | BSE: 540975) has fallen 15% in the last month, on the back of fears of possible government intervention in the pricing of hospital medicines and consumables.

The healthcare organization runs hospitals in India and operates across a wide range of medical specialties.

Dixon Technologies (NSE: DIXON | BSE: 540699) corrected more sharply by about 16% during the same period.

The company produces a wide range of electronic products, including cell phones, consumer electronics and home appliances. Dixon had been dropped from the model portfolio back in July 2026 but was added again after the latest price correction.

Indegene, Emcure Pharma, Endurance Technologies

Over the last month, Emcure Pharmaceuticals (NSE: EMCURE | BSE: 544210) has dropped about 9%.

The pharmaceutical company manufactures and markets drugs across a wide range of therapeutic areas. The stock price fell recently because of fears of possible price controls on drugs.

Endurance Technologies (NSE: ENDURANCE | BSE: 540153) has fallen 15% in the last month and 23% in the last year.

The auto components maker manufactures transmission products, suspension components, aluminum castings and braking systems. It caters to two-wheeler and four-wheeler manufacturers in domestic and international markets.

Indegene (NSE: INDGN | BSE: 544172) saw a fall of around 6% in the last month which is relatively modest.

Globally, the organization provides pharmaceutical and biotechnology companies with technology services, commercialization, and digital transformation.

Why These Midcaps Were Added Post Correction?

The portfolio was rebalanced following a period of falling prices in many sectors’ stocks.

Indian equities have been under pressure due to elevated crude oil prices, geopolitical uncertainty and worry over earnings growth.

Besides the five midcap additions, the model portfolio also saw changes to its large-cap allocation.

Bajaj Finserv replaced Bajaj Finance and Mankind Pharma moved from the midcap to the largecap category. There was increased allocation in Reliance Industries and reduced positions in some of the banking, insurance and IT companies.

Changes were made in the model portfolio, and do not necessarily reflect actual share purchases and sales.

Going forward, midcaps will remain affected on account of Q2FY27 earnings, crude oil movement, geopolitical developments and corporate profitability.

The most recent correction has seen the valuations of many companies come down but it will be the delivery of earnings, the fundamentals of the business and the overall market that will determine how they perform going forward.