IGI Logo

Below is quote on Morning market 26th October 2021 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"There are two important trends in the market now. One, there is selling pressure in the broader market. While Nifty is up 1.52 % for the last one month, Nifty Small-cap is down 1.11%. Nifty Mid-cap is down 8% from its peak. Two, FIIs are continuously selling in the market; they have sold Rs 10300 cr worth equity in the last 5 days in the cash market. If this FII selling sustains that would be a major drag on the market. The 8% correction in the mid-cap space is not getting reflected in the large-cap indices since stocks like RIL (10.4% weightage) ICICI Bank (7.2%) and HDFC (6.5%) have been resilient. And there are no valuation concerns in these stocks unlike the froth that has been accumulating in many stocks in the mid and small-cap space. The run up in many micro-caps and penny stocks has been totally irrational and likely to end in grief for many retail investors chasing these 'cats  and dogs'. As the saying goes, " we will know who all have been swimming naked only when the tide recedes." There are clear signs of the broader market tide receding"

Above views are of the author and not of the website kindly read disclaimer