The small-cap stocks saw a sharp sell-off in Monday’s early trading hours. The BSE small-cap index declined as much as 4.3% to a level of 47,959.43. Out of 939 trading stocks, only 31 were trading in the green while 906 stocks were lower. In this weak marketthe experts have advised the retail investors to remain cautious
There’s no justification for the high valuations in small- and mid-cap stocks. On the contrary, there is a valuation comfort in largecaps, especially banking stocks are attractively valued, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “IT and pharma are safe segments during this time of market turbulence.”
This is a time for buying in markets now as this phase cannot continue for long, said Kishor Ostwal, Chief Managing Director at CNI Research. “It is better to invest instead of trying to time the market. Investors need to have faith in the Indian market and Govt policies and not be very perturbed by the FII selling spree.”
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“This is not the time to sell quality investments. I would advise investors to stay calm, especially when sell- off of this kind is happening,” said Deven Choksey, Managing Director of DRChoksey FinServ. By its very nature the sell-off is primarily in weak stocks, he added.