Key Points
"We are seeing a mean reversion phenomenon in the markets where the mid- and small-cap indices both peaked in October and are now experiencing a correction at a rate faster than the Nifty" said Deepak Jasani, head of retail research at HDFC Securities..
"Investors display a sentiment of risk aversion and are not willing to wait longer, and hence are pulling out of the market booking profits wherever available or cutting losses."iStock..
Mumbai: Mid-cap, small-cap, and penny stocks plunged on Monday, bearing the biggest brunt of investors' increased risk aversion triggered by concerns over the surge in US bond yields and geopolitical uncertainties...
"The Nifty Smallcap 250 closed below its 50-day simple moving average (SMA) on Monday and the correction wave is likely to continue where support could be seen at 11,800-11,600 levels," said Amol Athawale, vice president, technical research, Kotak Securities..
"Investors should start evaluating large-cap names like HDFC Bank, ICICI Bank, Reliance Industries, Hindustan Unilever, Infosys, and Bharti Airtel which are available at reasonable valuations currently and would offer comfort in the face of market volatility," Sriram Velayudhan, senior vice president, alternative research, IIFL Securities...
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