Prudent trading and investing calls for restraint and investors must wait for signs of revival before jumping into quality mid and smallcap stocks, said Umesh Mehta, Head of Research, SAMCO Securities.
The bears continued to maintain their grip on Indian bourses as Nifty was down 106 points, trading at 11,082, while Sensex, was down over 300 points, trading at 37393.72, in the last hour of trading. Nifty is now on the verge of its biggest monthly fall since September 2018.
In the broader market, Nifty Midcap hit a 30-month low, shedding 2.02 percent. The stocks which dragged the index included Cholamandalam Investment, Coromandal International, Engineers India, Cummisn India, Dish TV, Graphite India, Future Consumer, HEG, Indian Bank, NBCC, JSPL, RBL Bank, Quess Corp, Reliance Power, Reliance Capital, Reliance Infra and Tata Power among others.
Nifty Smallcap index, on the other hand, was down 2.61 percent in the afternoon session. The top losers were Coffee Day Enterprises, RBL Bank, NBCC, Indian Bank, KRBL, IDBI Bank, Indiabulls Real Estate, HEG, KIOCL, YES Bank, Bank of India, GE T&D, Bank of Maharashtra, Indiabulls Housing Finance, Vodafone Idea, NCC and Cyient among others.
Investors must not pre-empt bottoms for the mid and smallcap space. Prudent trading and investing calls for restraint and investors must wait for signs of revival before jumping into quality mid and smallcap stocks, said Umesh Mehta, Head of Research, SAMCO Securities.
Deepak Jasani - Head, Retail Research at HDFC Securities in an interview with Moneycontrol said that investors would have to learn to live with this situation and retune their portfolios as long as the broader economy remains sluggish and mid/smallcaps take time to bottom out and start to rise.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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