Stock Market

Fundamentals In Small-Caps Remain Intact, Says Shankar Sharma

The mid-cap stocks recover themselves after the days of continued pain. Now, this is the time for both the mid-cap and the small-cap to rise in the stock market. The stocks of selected caps will perform extraordinarily like Bajaj Finance, HUL, and HDFC said by Porinju Veliyath.

In an interview with CNBC TV18 held yesterday, Porinju Veliyath stated that after the big fall, it is the most exciting time when he looked back in the last five years. Now is the time to really look into and load, some of the very selective of course. He doesn’t want to generalize too much. Selective mid and small caps- it is a wonderful time to pick with a very high margin of safety than the top quality stocks today.

Ace small investor, Shankar Sharma said that the fundamentals are complete in the space. In spite of the Sensex fresh record highs, the small caps continued to be under pressure. By decoding the bear markets, Shankar Sharma tweeted, “Two types of bear markets: fundamental & technical. Fundamentals in small caps are intact. So what’s caused the meltdown? Technical factors i.e, trading curbs, hence low liquidity, hence forced selling into illiquidity, leading to a domino effect collapse on the entire segment.”

Dalal Street Rakesh Jhunjhunwala agreed with the major correction done in the small cap and the mid-cap. In the interview with ET Now, he mentioned a few crucial things–the markets prepare for the second phase of up-move. A plethora of excesses can be found in the caps–the stocks went from Rs.100 to Rs.500. However, a tremendous achievement has seen in the stock market.

The markets have given up 40 percent of that gain, then also a tremendous growth is achieved, as reported by the Financial Express.

It is hoping that stocks will perform better in order to reach a significant margin like Bajaj Finance, HUL, and HDFC.

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