The ongoing correction has affected most stocks, (barring a few that have gone up while markets have gone down) be it large cap, or small cap. The extent of correction can be varied. But as of now I cannot find any evidence to suggest that small caps have held up more as compared to large caps.
Once the correction is over and a broad based rally begins, picture becomes more clear because the winners of the next leg of the rally will reveal themselves by their price action. So going forward, it makes sense to keep observing sectors/stocks that come out of the blocks the earliest. That time might be some time away, as first we need to see the correction end and then a rally begin and gain some strength.
This FII/DII buying and selling is only one part of the equation. Usually when markets get overheated, a correction usually ensues and the reasons for the correction keep changing. The current correction has been more in the nature of death by a thousand cuts, rather than a straight line correction.
As investors our focus has to be more towards the companies we want to invest in. Results season is over. And the current market turmoil keeps giving us chances to study companies, and if convinced, take appropriate action.
@pursuit I am not a part of any amateur or other investors club based in Baroda.
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