January 21, 2024
1 min read

Experts Caution Against Overpriced Mid and Small Cap Stocks

The recent correction in the market has not changed the underlying uptrend in the market….reports Asian Lite News

Hyper speculative and trading activity has pushed many mid and small cap stocks to frothy valuations and correction in these stocks is only a matter of time, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The recent correction in the market has not changed the underlying uptrend in the market. FII selling is being countered by sustained DII and retail buying. And the strength of the economy is providing fundamental support to the market. Therefore, FII selling is not strong enough to pull down the market hugely, unlike in the past when FIIs used to call the shots, he said.

This feature of the market can be utilised by investors to buy quality stocks which come under short term pressure due to FII selling. It is important to buy high quality stocks in performing sectors since many unproven stocks in the broader market are flying high on hopes rather than on fundamentals or strong prospects, he added.

Deepak Jasani, Head of Retail Research at HDFC Securities, said strong global cues prompted Indian equity indices to close higher on Friday after a three-day losing streak After a gap-up opening of more than 150 points,

Nifty consolidated throughout the day to close at 21,622.

From the recent low of 21,285, Nifty has registered a recovery of 385 points. The advance-decline ratio on BSE stood at 1.85 levels on BSE, the highest since January 4. As the breadth of the Market is very strong we expect the stock-specific bullish trend is likely to continue. In the near term, Nifty could face resistance at 21,850, while support is seen at 21,500.

BSE Sensex is up 155 points at 71,836 points on Saturday. Hindustan Unilever is down more than 3 per cent after quarterly results.

Indusind Bank is down 1 per cent, Wipro is down 1 per cent. Powergrid, NTPC are up 2 per cent.

ALSO READ: Hyderabad Gears Up for UP’s Pharma Conclave

Previous Story

Moody’s Predicts Inflation Return by 2025

Next Story

Wayfair to Cut 13% of Global Workforce

Latest from India News

Afghan FM Muttaqi Begins Week-Long India Visit

Muttaqi will be in India till October 16…reports Asian Lite News Afghanistan’s Foreign Minister Amir Khan Muttaqi arrived in New Delhi on Thursday for an official visit to India, focused on discussing

Peace in Afghanistan Vital, Says India

The Indian delegation at the meeting was led by Ambassador to Russia Vinay Kumar who expressed support for independent, peaceful and stable Afghanistan….reports Asian Lite News On Tuesday, India reaffirmed that a

India, Qatar Strengthen Trade Ties

Goyal expressed optimism about the growing economic engagement between the two countries, stating, “Glad to meet Ahmed bin Mohammed Al-Sayed….reports Asian Lite News Union Minister of Commerce and Industry Piyush Goyal met

Keir Starmer Lands in Mumbai for First India Visit

The visit, described by No.10 Downing Street as a “two-day trade mission to Mumbai,” is focused on strengthening trade ties…reports Asian Lite News United Kingdom Prime Minister Keir Starmer arrived in Mumbai

Diaspora Leaders Urge Pragmatic India-US Ties

Keshap spoke about the recent H-1B visa crackdown from the Trump administration, calling it a decision “driven by domestic politics.”…reports Asian Lite News Prominent Indian American leaders have called for deeper India-US
Go toTop

Don't Miss

India on course to fulfil net zero emissions: Yadav at COP27

The world urgently needs a paradigm shift from mindless and

PM Modi to speak at UN Summit of Future on Sept 23

External Affairs Minister (EAM), S. Jaishankar, is now listed as