Among NSE Smallcap 100 index constituents, Suzlon Energy Ltd shares are up 289 per cent in the last six months; BSE is up 258 per cent while Kalyan Jewellers is up 190 per cent.
A good trade is about recognising where there is a good opportunity. Even though most traders are uncertain about the short term, they said the current crash could be used as an opportunity to add long-term positions
Mutual fund data clearly suggests that a many advisors kept egging on investors to increase exposure to the smallcaps and other frothy spaces even as the market took off, kind of irrationally.
The market has started pricing in a scenario wherein global financial conditions would tighten up further and oil prices may stay higher, probably touching $100 a barrel mark, in coming months.