Small and mid-cap stocks driven up by speculative buying correcting, say analysts
Many such stocks driven up by speculative buying without consideration for the fundamentals are correcting.
An important ongoing trend in the market is the weakness in the broader market with sharp cuts in many mid and small-caps, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Many such stocks driven up by speculative buying without consideration for the fundamentals are correcting.
This trend is likely to continue since many such stocks are excessively valued, he said.
The explosive growth in the number of demat accounts and the newbies chasing mid and small-caps influenced by recency bias have contributed to this froth in the broader market.
A correction in this segment is inevitable and desirable, he added.Correction will give opportunities to buy fairly valued stocks in this segment like PSU Banks, he added.
Devarsh Vakil - Deputy Head, Retail Research, HDFC Securities said after a firm opening on Monday, Nifty not only gave up all the strength but fell precipitously on the back of a sharp sell-off in PSU stocks.
Nifty lost 166 points to close at 21616. Small-cap stocks received maximum beating.
The BSE small-cap index lost over 1,000 points. BSE Sensex is trading at 71,492.84 points, up by 420.35 points or 0.59 per cent. ICICI Bank is up 2 per cent.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
05:22 PM IST