The correction of March on Dalal Street should serve as a warning to all those who tend to buy stocks without bothering to look at what is the business of the company. The way correction panned out, there is a high probability that going forward that an upward movement in mid-cap space would be more stocks or sector specific rather than being a broad brush up move in which every stocks is moving upward with any rhyme or reason, One thing which long term investors who are taking exposure to the mid-cap should focus on individual companies and their underlying business. Also it is time to rejig the portfolio and go with better quality stocks in even the mid cap space. At the same time, because overall valuations are high, be ready for underperformance for some time and focus on the long term.
Given the way markets have panned out in the last one year, after a short correction, stocks have been able to move upward once again. The question is whether this time after the correction in the month of March, will this happen again and if yes then will it be across the board rally or more specific to some sectors only. Given the fact valuations are high there is a high probability that we might see selective up moves in stocks. But when
ETMarkets.com
11 mins read, Last Updated:
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