Stock markets are pathologically pragmatic. They see a lot of sun even when dark clouds swirl on the horizon. It is perhaps this inherent positivity that keeps the markets going.
The second Covid wave has phased out and a third wave is feared round the corner, but the markets are looking forward to an impressive earnings growth, despite the mounting uncertainties. The main reason for this market dynamics stems from the fact that investors are rushing inexorably for equities in the absence of high-yielding investment avenues and a low-interest rate regime. Stocks are known to beat inflationary pressures.
India VIX, a volatility index based on the Nifty index option prices, has fallen from its highs of 80 in early 2020s to as low as 15. It indicates a receding fear among investors. Similar trend of one-way growth has been seen in the small-cap and midcap space since April last year.
More than a year later, investors wonder if the small-cap and mid-cap space is still left with some fire in it.
“These small and mid-cap stocks were pressured for long. There was scanty growth. But the picture has changed now. Cost-cutting measures adopted by these companies during the pandemic pushed their bottomlines up,” points out S Ranganathan, Head of Research at LKP Securities. “Markets are poised to scale new highs. The broader markets will continue to outperform the benchmark Nifty and Sensex.”
Denne historien er fra July 2021-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 2021-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Here's How To Claim Tax Refund If You Missed The ITR Deadline
The Income-tax Act, 1961, allows the refund of any excess income tax deducted on your income beyond your actual tax liability.
26 Spiels You Should Not Fall For
We have a list of 26 traps that you should avoid in your journey to creating wealth
Unified Pension Scheme
The Union Cabinet approved the Unified Pension Scheme (UPS) on August 24, 2024, guaranteeing 50 per cent of the salary as assured pension for central government employees.
Unlocking Financial Freedom with Freedom SIP: A Beginner's Guide
Freedom SIP is the smartest way to finance your retirement because it allows you to ride the compounding rocket to build wealth, even by investing a small monthly sum.
Asset Allocation Strategy to Safeguard Against Market Fluctuations
Invest in different asset classes, such as equities, debt, gold, etc., so that if a particular segment doesn't perform in a given situation, others will come to the rescue.
The Role of Asset Allocation in Investing
A proper mix of asset allocation that aligns with investor's goals is key to the portfolio's long-term performance and reaching milestones.
Why Retirement Planning is Crucial in Life
Retirement planning is the key if you want a financially secure life in your sunset years.
IS SENIOR HOUSING FOR YOU?
Many seniors have taken refuge in senior living facilities in their twilight years as their children have moved abroad. While that may help them ward off boredom, they often come at a huge cost
WITH OR WITHOUT INDEXATION: WHEN DO HOMEOWNERS PAY LESS?
Calculating taxes under both methods-considering inflation and property appreciation-can yield a more precise result
Flexing Its Way Across Market Cycles
Very few funds meet investors' expectations of delivering superior returns across market cycles, and HDFC Flexi Cap Fund is one of them.