The Nifty Midcap 100 index hit an over 2-year low on Wednesday, on the back of a selloff in financials, information technology and automobile stocks.

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The Nifty Midcap index, which has fallen more than 16 percent in the last one year, fell to 15,510 intraday, its lowest level since January 27, 2017. The index slipped as much as 1.24 percent in today's trading session.

The top losers on the index included RBL Bank, Power Finance Corporation, Federal Bank, REC, Tata Power, Voltas, AU Small Finance Bank, LIC Housing Finance, Apollo Hospitals and Info Edge.

So far this month, RBL Bank has lost over 37 percent value while Info Edge has slipped only 0.80 percent. Out of the 10 most-weighted stocks on Nifty Midcap 100 index, six have already eroded investor value in double-digits in a time span of one month.

According to market experts, extensive selling by overseas investors in domestic equities is the reason behind the downfall in Nifty Midcap 100 index. In the month of July itself, the FPIs (Foreign portfolio investors) pulled out a net Rs 3,758 crore from the Indian capital markets on account of multiple headwinds, including the super-rich tax announced in Budget 2019-20.

"The sentiments have been impacted by the higher tax on FPIs registered as trusts and association of persons. However, the main reason for the selling is the sharp slowdown in the economy particularly in segments like autos. Besides, the second-quarter results from corporates have not been reassuring," V K Vijayakumar, the chief investment strategist at Geojit Financial Services, told PTI newswire.