Investors on Dalal Street are waiting for signs of a trend reversal in the broader market despite equity benchmarks Sensex and Nifty hovering at record high levels.
Since the beginning of 2018, 85 per cent of stocks on BSE eroded up to 99 per cent of investors’ wealth till June 2019. That bear hug intensified ever since the Union Budget was unveiled on July 5.
“There are expectations that the broader market may revive in the coming months and benchmark equity indices will hit levels never seen before,” said AK Prabhakar, Head of Research, IDBI Capital Markets, who projects Nifty at 13,500 by December this year.
The stock market is always about ups and downs, but never devoid of opportunities. Investors trying to capture such opportunities need to take lessons from the mistakes made during the previous bull run so that they make more money than they lose.
Mean reversion
What goes up must come down! This idiom came from the physical properties of gravity, but holds true for the equity market too. During calendar year 2017, BSE Smallcap index rallied nearly 60 per cent again ..
Value investor Gaurav Sud said the stock market is like a pendulum which keeps fluctuating around fair value. “Those who understand the concept of mean reversion would have sold some of their smallcap holdings in January 2018, when the outperformance was at its peak. Those who did not are suffering in this market correction,” he said.
Say no to high debt companies
One needs to understand the business model and its fundamentals before investing in a stock. This is ..
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