Shah notes that despite the recent correction, the Nifty still trades at a 4% premium to its long-term average. This suggests that he sees room for an additional 4% decline in the market for valuations to ease out.
The Nifty Smallcap index has dropped over 20% from its December 2024 peak, while the Nifty Midcap index is down 18% from its September high.
The September quarter earnings picture showed that the broad-basing of earnings has moderated, as it was the largecaps that primarily drove the September quarter earnings growth for the Nifty 500 universe.
Small and midcap stocks have been hammered as concerns around frothy valuations prompted increased SEBI scrutiny. The SEBI mandated stress test for mutual funds has added to panic among investors, triggering a meltdown in the broader market
Stress test for mutual funds investing in small and midcaps alongwith concerns brought forth by SEBI have weighed on the broader market in recent times.
In a conversation with CNBC-TV18, Nilesh Shah, the managing director of Kotak Mutual Fund said that stress tests are not the cause of the market correction and that this correction is an unwinding of the excesses
Benchmarks Sensex and Nifty 50 traded flat after their record opening while BSE Midcap and BSE Smallcap indices were up 0.5% and 0.9%, respectively.
Smallcap and midcap indices fell after capital markets regulator SEBI advised mutual funds to protect investor interest by limiting flows, rebalancing portfolios and other measures. We explain why this led to the fall.
This correction in the broader market is healthy, it will pull some counters out of the overbought zone, say analysts
The Sensex and Nifty 50 gained over 2 percent last week. The gains came despite a spike in crude prices, a rise in the dollar index, a surge in yields on the US 10-year bonds, and continuous selling by FIIs.
Analysts feel that any ripples will be felt only if the rise in prices continues in coming weeks. Most of them expect no major corrections in the market in the near term, but recommend that investors pick up quality stocks in the event of a dip.
Both the Nifty and the Sensex have fallen a percent in the past month. In contrast, the Nifty midcap 150 has surged over 3 percent and the Nifty smallcap 250 has jumped 6 percent during the same timeframe
Domestic investor will continue to remain cautious and in that context, companies that are focused on the domestic businesses will continue to disappoint whereas the companies which are exposed to exports will continue to do well
India VIX has been making higher lows as well as higher highs. The lower end of the India VIX has been trading in the region of 13-14, and the higher end has been trading in a band of 18-20. If the India VIX were to breach 20 on the upside, in the intermediate to short-term there could be more trouble.
It was a good 4.5% rally which our market saw last week. CNBC-TV18‘s managing editor Udayan Mukherjee says the next 10 days are stacked up and are crucial for all markets.
Markets are red across the screen and in India the story is no different. Rajen Shah of Angel Broking says there is a lot of pain in the system due to the rumblings from the eurozone.
It was a disappointing session for trade and a very bad start to the week, says CNBC-TV18's managing editor Udayan Mukherjee.
'If you must play, decide on three things at the start: the rules of the game, the stakes, and the quitting time.' ~Chinese Proverb
The market ended on an extremely negative note with Nifty at around 4,943 levels, down 118 points and Sensex shut shop 388 points lower at 16,488 levels. The Nifty had an unexpected 120-point fall in the second half of the trading session, said CNBC-TV18's Managing Editor Udayan Mukherjee adding that the broader market also suffered huge damage.
The market ended on a negative note with Nifty at 5,068 levels, down 79 points and Sensex shut shop 236 points lower at 16,882 levels. The Nifty is well below 5,100 levels, which is very disappointing after yesterday’s fall, said CNBC-TV18's managing editor Udayan Mukherjee.
Right now, there is no frenetic newsflow or no massive event in the horizon which can spark of a risk rally, says CNBC-TV18's Managing Editor Udayan Mukherjee.
CNBC-TV18's managing editor Udayan Mukherjee says volumes picked up towards the end when the market started slipping in the afternoon session.
CNBC-TV18's Managing Editor Udayan Mukherjee says that even though Europe has been a little iffy, today the problem has been the broader market.